Watsco (WSO) 10-K 21 Feb 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Feb. 17, 2017	Jun. 30, 2016
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Trading Symbol	WSO
Entity Registrant Name	WATSCO INC
Entity Central Index Key	105,016
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 3,693,000,000
Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		30,362,119
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		5,243,829

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016		Dec. 31, 2015		Dec. 31, 2014
Revenues	$ 4,220,702	[1]	$ 4,113,239	[1]	$ 3,944,540
Cost of sales	3,186,118		3,105,882		2,988,138
Gross profit	1,034,584		1,007,357		956,402
Selling, general and administrative expenses	688,952		670,609		650,655
Operating income	345,632		336,748		305,747
Interest expense, net	3,713		5,547		5,206
Income before income taxes	341,919		331,201		300,541
Income taxes	105,936		104,677		91,839
Net income	235,983		226,524		208,702
Less: net income attributable to non-controlling interest	53,173		53,595		57,315
Net income attributable to Watsco, Inc.	$ 182,810		$ 172,929		$ 151,387
Earnings per share for Common and Class B common stock:
Basic	$ 5.16	[2]	$ 4.91	[2]	$ 4.33
Diluted	$ 5.15	[2]	$ 4.90	[2]	$ 4.32
[1]	Sales of residential central air conditioners, heating equipment and parts and supplies are seasonal. Demand related to the residential central air conditioning replacement market is typically highest in the second and third quarters, and demand for heating equipment is usually highest in the fourth quarter. Demand related to the new construction sectors throughout most of the markets is fairly even during the year except for dependence on housing completions and related weather and economic conditions.
[2]	Quarterly and year-to-date earnings per share are calculated on an individual basis; therefore, the sum of earnings per share amounts for the quarters may not equal earnings per share amounts for the year.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net income	$ 235,983	$ 226,524	$ 208,702
Other comprehensive gain (loss), net of tax
Foreign currency translation adjustment	6,211	(39,378)	(21,117)
Unrealized (loss) gain on cash flow hedging instruments	(965)	2,713	280
Reclassification of loss (gain) on cash flow hedging instruments into earnings	323	(1,993)
Unrealized gain (loss) on available-for-sale securities	14	(8)	1
Other comprehensive gain (loss)	5,583	(38,666)	(20,836)
Comprehensive income	241,566	187,858	187,866
Less: comprehensive income attributable to non-controlling interest	55,382	38,086	48,752
Comprehensive income attributable to Watsco, Inc.	$ 186,184	$ 149,772	$ 139,114

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 56,010	$ 35,229
Accounts receivable, net	475,974	451,079
Inventories	685,011	673,967
Other current assets	23,161	20,990
Total current assets	1,240,156	1,181,265
Property and equipment, net	90,502	62,715
Goodwill	379,737	378,310
Intangible assets, net	158,564	160,481
Other assets	5,690	5,671
Total assets	1,874,649	1,788,442
Current liabilities:
Current portion of other long-term obligations	200	184
Accounts payable	185,482	145,162
Accrued expenses and other current liabilities	129,206	124,955
Total current liabilities	314,888	270,301
Long-term obligations:
Borrowings under revolving credit agreement	235,294	245,300
Other long-term obligations, net of current portion	348	514
Total long-term obligations	235,642	245,814
Deferred income taxes and other liabilities	72,371	68,606
Commitments and contingencies
Watsco, Inc. shareholders' equity:
Preferred stock, $0.50 par value, 10,000,000 shares authorized; no shares issued
Paid-in capital	592,350	602,522
Accumulated other comprehensive loss, net of tax	(43,530)	(46,904)
Retained earnings	550,482	495,276
Treasury stock, at cost, 6,322,650 shares of Common stock and 48,263 shares of Class B common stock at both December 31, 2016 and 2015	(114,425)	(114,425)
Total Watsco, Inc. shareholders' equity	1,005,828	957,310
Non-controlling interest	245,920	246,411
Total shareholders' equity	1,251,748	1,203,721
Total liabilities and shareholders' equity	1,874,649	1,788,442
Common Stock
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	18,341	18,308
Class B Common Stock
Watsco, Inc. shareholders' equity:
Common stock, $0.50 par value	$ 2,610	$ 2,533

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Preferred stock, par value	$ 0.50	$ 0.50
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common Stock
Common stock, par value	$ 0.50	$ 0.50
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares outstanding	36,682,562	36,616,197
Treasury stock, shares	6,322,650	6,322,650
Class B Common Stock
Common stock, par value	$ 0.50	$ 0.50
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares outstanding	5,218,754	5,066,209
Treasury stock, shares	48,263	48,263

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock, Class B Common Stock and Preferred Stock	Paid-In Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Treasury Stock	Non-controlling Interest
Beginning balance at Dec. 31, 2013	$ 1,127,392	$ 20,549	$ 606,384	$ (11,474)	$ 339,362	$ (114,425)	$ 286,996
Beginning balance (in shares) at Dec. 31, 2013		34,727,121
Net income	208,702				151,387		57,315
Other comprehensive gain (loss)	(20,836)			(12,273)			(8,563)
Issuances of non-vested restricted shares of common stock (in shares)		218,725
Issuances of non-vested restricted shares of common stock		$ 109	(109)
Forfeitures of non-vested restricted shares of common stock (in shares)		(5,000)
Forfeitures of non-vested restricted shares of common stock		$ (2)	2
Common stock contribution to 401(k) plan	1,759	$ 9	1,750
Common stock contribution to 401(k) plan (in shares)		18,309
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)		73,948
Stock issuances from exercise of stock options and employee stock purchase plan	4,666	$ 37	4,629
Retirement of common stock (in shares)		(26,482)
Retirement of common stock	(2,615)	$ (13)	(2,602)
Share-based compensation	12,006		12,006
Excess tax benefit from share-based compensation	1,828		1,828
Cash dividends declared and paid on Common and Class B common stock	(69,870)				(69,870)
Decrease in non-controlling interest in Carrier Enterprise I	(87,735)		(43,324)				(44,411)
Distributions to non-controlling interest	(43,258)						(43,258)
Ending balance at Dec. 31, 2014	1,132,039	$ 20,689	580,564	(23,747)	420,879	(114,425)	248,079
Ending balance (in shares) at Dec. 31, 2014		35,006,621
Net income	226,524				172,929		53,595
Other comprehensive gain (loss)	(38,666)			(23,157)			(15,509)
Issuances of non-vested restricted shares of common stock (in shares)		200,479
Issuances of non-vested restricted shares of common stock		$ 100	(100)
Forfeitures of non-vested restricted shares of common stock (in shares)		(5,000)
Forfeitures of non-vested restricted shares of common stock		$ (2)	2
Common stock contribution to 401(k) plan	1,963	$ 9	1,954
Common stock contribution to 401(k) plan (in shares)		18,343
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)		124,262
Stock issuances from exercise of stock options and employee stock purchase plan	8,632	$ 62	8,570
Retirement of common stock (in shares)		(33,212)
Retirement of common stock	(4,140)	$ (17)	(4,123)
Share-based compensation	13,233		13,233
Excess tax benefit from share-based compensation	2,422		2,422
Cash dividends declared and paid on Common and Class B common stock	(98,532)				(98,532)
Distributions to non-controlling interest	(39,754)						(39,754)
Ending balance at Dec. 31, 2015	1,203,721	$ 20,841	602,522	(46,904)	495,276	(114,425)	246,411
Ending balance (in shares) at Dec. 31, 2015		35,311,493
Net income	235,983				182,810		53,173
Other comprehensive gain (loss)	5,583			3,374			2,209
Issuances of non-vested restricted shares of common stock (in shares)		183,144
Issuances of non-vested restricted shares of common stock		$ 92	(92)
Forfeitures of non-vested restricted shares of common stock (in shares)		(26,000)
Forfeitures of non-vested restricted shares of common stock		$ (13)	13
Common stock contribution to 401(k) plan	2,348	$ 10	2,338
Common stock contribution to 401(k) plan (in shares)		20,045
Stock issuances from exercise of stock options and employee stock purchase plan (in shares)		72,482
Stock issuances from exercise of stock options and employee stock purchase plan	5,696	$ 36	5,660
Retirement of common stock (in shares)		(30,761)
Retirement of common stock	(4,018)	$ (15)	(4,003)
Share-based compensation	11,848		11,848
Cash dividends declared and paid on Common and Class B common stock	(127,604)				(127,604)
Decrease in non-controlling interest in Carrier Enterprise I	(42,909)		(25,936)				(16,973)
Distributions to non-controlling interest	(38,900)						(38,900)
Ending balance at Dec. 31, 2016	$ 1,251,748	$ 20,951	$ 592,350	$ (43,530)	$ 550,482	$ (114,425)	$ 245,920
Ending balance (in shares) at Dec. 31, 2016		35,530,403

Consolidated Statements of Sha7

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash dividends declared and paid, common stock	$ 3.60	$ 2.80	$ 2

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 235,983	$ 226,524	$ 208,702
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	20,066	19,117	17,927
Share-based compensation	12,319	12,596	11,473
Deferred income tax provision	2,720	4,687	289
Provision for doubtful accounts	3,487	2,688	2,609
Non-cash contribution to 401(k) plan	2,348	1,963	1,759
Gain on sale of property and equipment	(189)	(487)	(1,292)
Excess tax benefits from share-based compensation		(2,422)	(1,828)
Changes in operating assets and liabilities:
Accounts receivable	(26,941)	(26,121)	(41,068)
Inventories	(9,729)	(3,652)	(98,741)
Accounts payable and other liabilities	39,759	(13,225)	45,242
Other, net	(2,067)	(285)	(92)
Net cash provided by operating activities	277,756	221,383	144,980
Cash flows from investing activities:
Capital expenditures	(43,577)	(23,698)	(21,512)
Proceeds from sale of property and equipment	744	760	2,388
Net cash used in investing activities	(42,833)	(22,938)	(19,124)
Cash flows from financing activities:
Dividends on Common and Class B common stock	(127,604)	(98,532)	(69,870)
Purchase of additional ownership from non-controlling interest	(42,909)		(87,735)
Distributions to non-controlling interest	(38,900)	(39,754)	(43,258)
Net (repayments) proceeds under revolving credit agreement	(10,006)	(56,256)	74,729
Net (repayments) proceeds from other long-term obligations	(150)	(157)	235
Payment of fees related to revolving credit agreement			(381)
Excess tax benefits from share-based compensation		2,422	1,828
Net proceeds from issuances of common stock	5,653	5,957	4,245
Net cash used in financing activities	(213,916)	(186,320)	(120,207)
Effect of foreign exchange rate changes on cash and cash equivalents	(226)	(1,343)	(680)
Net increase in cash and cash equivalents	20,781	10,782	4,969
Cash and cash equivalents at beginning of year	35,229	24,447	19,478
Cash and cash equivalents at end of year	$ 56,010	$ 35,229	$ 24,447

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization, Consolidation and Presentation Watsco, Inc. (collectively with its subsidiaries, “Watsco,” “we,” “us” or “our”) was incorporated in Florida in 1956 and is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies (“HVAC/R”) in the HVAC/R distribution industry in North America. At December 31, 2016, we operated from 565 locations in 37 U.S. states, Canada, Mexico and Puerto Rico with additional market coverage on an export basis to portions of Latin America and the Caribbean. The consolidated financial statements include the accounts of Watsco, all of its wholly owned subsidiaries and the accounts of three joint ventures with Carrier Corporation (“Carrier”), in each of which Watsco maintains a controlling interest. All significant intercompany balances and transactions have been eliminated in consolidation. Foreign Currency Translation and Transactions The functional currency of our operations in Canada is the Canadian dollar. Foreign currency denominated assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date, and income and expense items are translated at the average exchange rates in effect during the applicable period. The aggregate effect of foreign currency translation is recorded in accumulated other comprehensive loss in our consolidated balance sheets. Our net investment in our Canadian operations is recorded at the historical rate and the resulting foreign currency translation adjustments are included in accumulated other comprehensive loss in our consolidated balance sheets. Gains or losses resulting from transactions denominated in U.S. dollars are recognized in earnings primarily within cost of sales in our consolidated statements of income. Our operations in Mexico consider their functional currency to be the U.S. dollar because the majority of their transactions are denominated in U.S. dollars. Gains or losses resulting from transactions denominated in Mexican pesos are recognized in earnings primarily within selling, general and administrative expenses in our consolidated statements of income. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the reporting period. Significant estimates include valuation reserves for accounts receivable, inventories and income taxes, reserves related to self-insurance programs and the valuation of goodwill and indefinite lived intangible assets. While we believe that these estimates are reasonable, actual results could differ from such estimates. Cash Equivalents All highly liquid instruments purchased with original maturities of three months or less are considered to be cash equivalents. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable primarily consist of trade receivables due from customers and are stated at the invoiced amount less an allowance for doubtful accounts. An allowance for doubtful accounts is maintained for estimated losses resulting from the inability of customers to make required payments. When preparing these estimates, we consider a number of factors, including the aging of a customer’s account, past transactions with customers, creditworthiness of specific customers, historical trends and other information. Upon determination that an account is uncollectible, the receivable balance is written off. At December 31, 2016 and 2015, the allowance for doubtful accounts totaled $6,169 and $5,305, respectively. Inventories Inventories consist of air conditioning, heating and refrigeration equipment and related parts and supplies and are valued at the lower of cost or market using a weighted-average cost basis and the first-in, first-out Vendor Rebates We have arrangements with several vendors that provide rebates payable to us when we achieve any of a number of measures, generally related to the volume level of purchases. We account for such rebates as a reduction of inventory until we sell the product, at which time such rebates are reflected as a reduction of cost of sales in our consolidated statements of income. Throughout the year, we estimate the amount of the rebate based on our estimate of purchases to date relative to the purchase levels that mark our progress toward earning the rebates. We continually revise our estimates of earned vendor rebates based on actual purchase levels. At December 31, 2016 and 2015, we had $9,926 and $8,086, respectively, of rebates recorded as a reduction of inventory. Substantially all vendor rebate receivables are collected within three months immediately following the end of the year. Marketable Securities Investments in marketable equity securities are classified as available-for-sale Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is computed using the straight-line method. Buildings and improvements are depreciated or amortized over estimated useful lives ranging from 3-40 5-7 3-10 Goodwill and Other Intangible Assets Goodwill is recorded when the purchase price paid for an acquisition exceeds the fair value of the net identified tangible and intangible assets acquired. We evaluate goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by first comparing the fair value of our reporting unit to its carrying value. If the fair value is determined to be less than the carrying value, a second step is performed to measure the amount of impairment loss. Other intangible assets primarily consist of the value of trade names and trademarks, distributor agreements, customer relationships and non-compete We perform our annual impairment tests each year and have determined there to be no impairment for any of the periods presented. There were no events or circumstances identified from the date of our assessment that would require an update to our annual impairment tests. Long-Lived Assets Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability is evaluated by determining whether the amortization of the balance over its remaining life can be recovered through undiscounted future operating cash flows. We measure the impairment loss based on projected discounted cash flows using a discount rate reflecting the average cost of funds and compared to the asset’s carrying value. As of December 31, 2016, there were no such events or circumstances. Fair Value Measurements We carry various assets and liabilities at fair value in the consolidated balance sheets. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements are classified based on the following fair value hierarchy: Level 1 Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices such as quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active; or model-driven valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs for the asset or liability. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability. Revenue Recognition Revenue primarily consists of sales of air conditioning, heating and refrigeration equipment and related parts and supplies and is recorded when shipment of products or delivery of services has occurred. Substantially all customer returns relate to products that are returned under warranty obligations underwritten by manufacturers, effectively mitigating our risk of loss for customer returns. Taxes collected from our customers and remitted to governmental authorities are presented in our consolidated statements of income on a net basis. Advertising Costs Advertising costs are expensed as incurred. Advertising expense for the years ended December 31, 2016, 2015 and 2014, were $22,242, $21,150 and $19,754, respectively. Shipping and Handling Shipping and handling costs associated with inbound freight are capitalized to inventories and relieved through cost of sales as inventories are sold. Shipping and handling costs associated with the delivery of products is included in selling, general and administrative expenses. Shipping and handling costs included in selling, general and administrative expenses for the years ended December 31, 2016, 2015 and 2014, were $42,809, $41,345 and $43,324, respectively. Share-Based Compensation The fair value of stock option and non-vested paid-in Income Taxes We record United States federal, state and foreign income taxes currently payable, as well as deferred taxes due to temporary differences between reporting income and expenses for financial statement purposes versus tax purposes. Deferred tax assets and liabilities reflect the temporary differences between the financial statement and income tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates is recognized as income or expense in the period that includes the enactment date. We and our eligible subsidiaries file a consolidated United States federal income tax return. As income tax returns are generally not filed until well after the closing process for the December 31 financial statements is complete, the amounts recorded at December 31 reflect estimates of what the final amounts will be when the actual income tax returns are filed for that calendar year. In addition, estimates are often required with respect to, among other things, the appropriate state income tax rates to use in the various states that we and our subsidiaries are required to file, the potential utilization of operating loss carryforwards and valuation allowances required, if any, for tax assets that may not be realizable in the future. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the “more-likely-than-not” Earnings per Share We compute earnings per share using the two-class two-class non-vested non-forfeitable two-class two-class Diluted earnings per share reflects the dilutive effect of potential common shares from stock options. The dilutive effect of outstanding stock options is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of stock options, would be used to purchase common stock at the average market price for the period. The assumed proceeds include the purchase price the optionee pays, the windfall tax benefit that we receive upon assumed exercise and the unrecognized compensation expense at the end of each period. Derivative Instruments and Hedging Activity We have used derivative instruments, including forward contracts and swaps, to manage our exposure to fluctuations in foreign currency exchange rates and interest rates. The use of these derivative instruments modifies the exposure of these risks with the intent to reduce the risk or cost to us. We use derivative instruments as risk management tools and not for trading purposes. All derivatives, whether designated as hedging relationships or not, are recorded on the balance sheet at fair value. Cash flows from derivative instruments are classified in the consolidated statements of cash flows in the same category as the cash flows from the items subject to the designated hedge or undesignated (economic) hedge relationships. The hedging designation may be classified as one of the following: No Hedging Designation. Cash Flow Hedge. Fair Value Hedge. See Note 13 for additional information pertaining to derivative instruments. New Accounting Standards Revenue Recognition In May 2014, the Financial Accounting Standards Board (the “FASB”) issued a standard on revenue recognition that provides a single, comprehensive revenue recognition model for all contracts with customers. The standard is principle-based and provides a five-step model to determine the measurement of revenue and timing of when it is recognized. This standard will be applied using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients or (ii) a modified retrospective approach with the cumulative effect of initially adopting the standard recognized at the date of adoption, which requires additional footnote disclosures. This standard is effective for our interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. We will adopt this guidance on January 1, 2018. While we are currently evaluating the method of adoption and the impact of the provisions of this standard, we expect similar performance obligations to result under this guidance as compared with deliverables and separate units of accounting currently identified. As a result, we expect the timing of our revenue recognition to generally remain the same. Presentation of Debt Issuance Costs In April 2015, the FASB issued guidance that will require that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, rather than as an asset. This guidance is effective retrospectively for interim and annual reporting periods beginning after December 15, 2015. The adoption of this guidance did not have an impact on our consolidated financial statements. Measurement of Inventory In July 2015, the FASB issued guidance that simplifies the measurement of inventory by replacing the lower of cost or market test with a lower of cost and net realizable value test. The guidance applies to all inventory that is measured using first-in, first-out Classification of Deferred Taxes In November 2015, the FASB issued guidance that requires deferred tax assets and liabilities to be classified as noncurrent in a classified balance sheet. This guidance can be applied either prospectively or retrospectively and will be effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact to our consolidated balance sheets. Leases In February 2016, the FASB issued guidance on accounting for leases, which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. This guidance will be applied using a modified retrospective approach and is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. We will adopt this guidance on January 1, 2019. While we are still evaluating the impact of adopting this guidance on our consolidated financial statements, including the option to elect certain practical expedients, we expect that upon adoption the right-of-use Share-Based Payments In March 2016, the FASB issued amended guidance related to employee share-based payment accounting. The guidance requires that all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. The guidance increases the amount companies can withhold to cover income taxes on awards without triggering liability classification for shares used to satisfy statutory income tax withholding obligations and requires application of a modified retrospective transition method. The amended guidance will be effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted if all provisions are adopted in the same period. We elected to early adopt the amended guidance during the quarter ended June 30, 2016, which required us to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The primary impact of adoption was the recognition of excess tax benefits in our provision for income taxes rather than paid-in Adoption of the amended guidance resulted in the recognition of excess tax benefits in our provision for income taxes rather than paid-in Quarter Ended March 31, 2016 As Reported As Adjusted Income Statement: Income taxes $ 15,508 $ 14,654 Net income $ 34,174 $ 35,028 Diluted earnings per share $ 0.71 $ 0.74 Diluted weighted-average common shares outstanding 32,537,225 32,546,314 Balance Sheet: Paid-in $ 610,285 $ 609,431 Cash Flow Statement: Net cash provided by operating activities $ 41,852 $ 42,706 Net cash used in financing activities $ (41,638 ) $ (42,492 )

EARNINGS PER SHARE

EARNINGS PER SHARE	12 Months Ended
	Dec. 31, 2016
EARNINGS PER SHARE	2. EARNINGS PER SHARE The following table presents the calculation of basic and diluted earnings per share for our Common and Class B common stock: Years Ended December 31, 2016 2015 2014 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 182,810 $ 172,929 $ 151,387 Less: distributed and undistributed earnings allocated to non-vested 14,806 13,634 11,444 Earnings allocated to Watsco, Inc. shareholders $ 168,004 $ 159,295 $ 139,943 Weighted-average common shares outstanding - Basic 32,582,385 32,435,961 32,308,073 Basic earnings per share for Common and Class B common stock $ 5.16 $ 4.91 $ 4.33 Allocation of earnings for Basic: Common stock $ 154,021 $ 146,037 $ 128,214 Class B common stock 13,983 13,258 11,729 $ 168,004 $ 159,295 $ 139,943 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 182,810 $ 172,929 $ 151,387 Less: distributed and undistributed earnings allocated to non-vested 14,801 13,626 11,435 Earnings allocated to Watsco, Inc. shareholders $ 168,009 $ 159,303 $ 139,952 Weighted-average common shares outstanding - Basic 32,582,385 32,435,961 32,308,073 Effect of dilutive stock options 34,119 44,395 50,781 Weighted-average common shares outstanding - Diluted 32,616,504 32,480,356 32,358,854 Diluted earnings per share for Common and Class B common stock $ 5.15 $ 4.90 $ 4.32 Diluted earnings per share for our Common stock assumes the conversion of all of our Class B common stock into Common stock as of the beginning of the fiscal year; therefore, no allocation of earnings to Class B common stock is required. At December 31, 2016, 2015 and 2014, our outstanding Class B common stock was convertible into 2,711,811, 2,699,710 and 2,707,725 shares of our Common stock, respectively. Diluted earnings per share excluded 31,839, 67,014 and 9,984 shares for the years ended December 31, 2016, 2015 and 2014, respectively, related to stock options with an exercise price per share greater than the average market value, resulting in an anti-dilutive effect on diluted earnings per share.

OTHER COMPREHENSIVE GAIN (LOSS)

OTHER COMPREHENSIVE GAIN (LOSS)	12 Months Ended
	Dec. 31, 2016
OTHER COMPREHENSIVE GAIN (LOSS)	3. OTHER COMPREHENSIVE GAIN (LOSS) Other comprehensive gain (loss) consists of the foreign currency translation adjustment associated with our Canadian operations’ use of the Canadian dollar as its functional currency and changes in the unrealized gains (losses) on cash flow hedging instruments and available-for-sale Years Ended December 31, 2016 2015 2014 Foreign currency translation adjustment $ 6,211 $ (39,378 ) $ (21,117 ) Unrealized (loss) gain on cash flow hedging instruments (1,321 ) 3,716 384 Income tax benefit (expense) 356 (1,003 ) (104 ) Unrealized (loss) gain on cash flow hedging instruments, net of tax (965 ) 2,713 280 Reclassification of loss (gain) on cash flow hedging instruments into earnings 442 (2,730 ) — Income tax (benefit) expense (119 ) 737 — Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax 323 (1,993 ) — Unrealized gain (loss) on available-for-sale 27 (12 ) 1 Income tax (expense) benefit (13 ) 4 — Unrealized gain (loss) on available-for-sale 14 (8 ) 1 Other comprehensive gain (loss) $ 5,583 $ (38,666 ) $ (20,836 ) The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: Years Ended December 31, 2016 2015 2014 Foreign currency translation adjustment: Beginning balance $ (47,204 ) $ (23,623 ) $ (11,181 ) Current period other comprehensive gain (loss) 3,745 (23,581 ) (12,442 ) Ending balance (43,459 ) (47,204 ) (23,623 ) Cash flow hedging instruments: Beginning balance 600 168 — Current period other comprehensive (loss) income (579 ) 1,628 168 Less reclassification adjustment 194 (1,196 ) — Ending balance 215 600 168 Available-for-sale Beginning balance (300 ) (292 ) (293 ) Current period other comprehensive income (loss) 14 (8 ) 1 Ending balance (286 ) (300 ) (292 ) Accumulated other comprehensive loss, net of tax $ (43,530 ) $ (46,904 ) $ (23,747 )

SUPPLIER CONCENTRATION

SUPPLIER CONCENTRATION	12 Months Ended
	Dec. 31, 2016
SUPPLIER CONCENTRATION	4. SUPPLIER CONCENTRATION Purchases from our top ten suppliers comprised 85%, 84% and 82% of all purchases made in 2016, 2015 and 2014, respectively. Our largest supplier, Carrier and its affiliates, accounted for 62%, 62% and 61% of all purchases made in 2016, 2015 and 2014, respectively. See Note 16. A significant interruption by Carrier, or any of our other key suppliers, in the delivery of products could impair our ability to maintain current inventory levels and could materially impact our consolidated results of operations and consolidated financial position.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2016
PROPERTY AND EQUIPMENT	5. PROPERTY AND EQUIPMENT Property and equipment, net, consists of: December 31, 2016 2015 Land $ 820 $ 820 Buildings and improvements 71,082 69,675 Machinery, vehicles and equipment 74,640 43,150 Furniture and fixtures 15,090 14,311 Computer hardware and software 42,515 38,876 204,147 166,832 Accumulated depreciation and amortization (113,645 ) (104,117 ) $ 90,502 $ 62,715 Depreciation and amortization expense related to property and equipment included in selling, general and administrative expenses for the years ended December 31, 2016, 2015 and 2014, were $14,853, $13,802 and $12,158, respectively.

DEBT

DEBT	12 Months Ended
	Dec. 31, 2016
DEBT	6. DEBT We maintain an unsecured, syndicated revolving credit agreement that provides for borrowings of up to $600,000. Borrowings are used to fund seasonal working capital needs and for other general corporate purposes, including acquisitions, dividends (if and as declared by our Board of Directors), capital expenditures, stock repurchases and issuances of letters of credit. The credit agreement matures on July 1, 2019. Included in the credit facility are a $90,000 swingline subfacility, a letter of credit subfacility and a $75,000 multicurrency borrowing sublimit. On January 24, 2017, we entered into an amendment to this credit agreement, which reduced the letter of credit subfacility from $50,000 to $10,000 and modified certain definitions. Borrowings under the credit facility bear interest at either LIBOR-based rates plus a spread, which ranges from 87.5 to 250.0 basis-points (LIBOR plus 100.0 basis-points at December 31, 2016), depending on our ratio of total debt to EBITDA, or on rates based on the higher of the Prime rate or the Federal Funds Rate, in each case plus a spread which ranges from 0 to 150.0 basis-points (0 basis-points at December 31, 2016), depending on our ratio of total debt to EBITDA. We pay a variable commitment fee on the unused portion of the commitment under the revolving credit agreement, ranging from 12.5 to 35.0 basis-points (15.0 basis-points at December 31, 2016). At December 31, 2016 and 2015, $235,294 and $245,300, respectively, were outstanding under the revolving credit agreement. The revolving credit agreement contains customary affirmative and negative covenants, including financial covenants with respect to consolidated leverage and interest coverage ratios, and other customary restrictions. We believe we were in compliance with all covenants at December 31, 2016.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2016
INCOME TAXES	7. INCOME TAXES The components of income tax expense from our wholly-owned operations and investments and our controlling interest in joint ventures with Carrier are as follows: Years Ended December 31, 2016 2015 2014 U.S. Federal $ 86,719 $ 85,585 $ 74,561 State 9,801 9,431 10,325 Foreign 9,416 9,661 6,953 $ 105,936 $ 104,677 $ 91,839 Current $ 103,216 $ 99,990 $ 91,550 Deferred 2,720 4,687 289 $ 105,936 $ 104,677 $ 91,839 We calculate our income tax expense and our effective tax rate for 100% of income attributable to our wholly-owned operations and for our controlling interest of income attributable to our joint ventures with Carrier, which are primarily taxed as partnerships for income tax purposes. Following is a reconciliation of the effective income tax rate: Years Ended December 31, 2016 2015 2014 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit and other 2.1 2.3 3.0 Excess tax benefits from share-based compensation (1.0 ) — — Tax effects on foreign income (0.1 ) (0.3 ) (1.0 ) Effective income tax rate attributable to Watsco, Inc. 36.0 37.0 37.0 Taxes attributable to non-controlling (5.0 ) (5.4 ) (6.4 ) Effective income tax rate 31.0 % 31.6 % 30.6 % The following is a summary of the significant components of our current and long-term deferred tax assets and liabilities: December 31, 2016 2015 Current deferred tax assets: Capitalized inventory costs and inventory reserves $ 2,301 $ 1,794 Allowance for doubtful accounts 1,379 1,053 Self-insurance reserves 500 519 Other current deferred tax assets 1,778 1,921 Total current deferred tax assets (1) 5,958 5,287 Long-term deferred tax assets: Share-based compensation 26,239 23,603 Other long-term deferred tax assets 449 352 Net operating loss carryforwards 209 207 26,897 24,162 Valuation allowance — — Total long-term deferred tax assets (2) 26,897 24,162 Current deferred tax liabilities: Other current deferred tax liabilities (473 ) (686 ) Total current deferred tax liabilities (1) (473 ) (686 ) Long-term deferred tax liabilities: Deductible goodwill (88,581 ) (83,868 ) Depreciation (5,883 ) (3,774 ) Other long-term deferred tax liabilities (1,160 ) (1,533 ) Total long-term deferred tax liabilities (2) (95,624 ) (89,175 ) Net deferred tax liabilities $ (63,242 ) $ (60,412 ) (1) Current deferred tax assets and liabilities have been included in the consolidated balance sheets in other current assets. (2) Long-term deferred tax assets and liabilities have been included in the consolidated balance sheets in deferred income taxes and other liabilities. Amounts earned by foreign subsidiaries are generally subject to United States income taxation upon repatriation. United States income taxes have not been provided on undistributed earnings of our foreign subsidiaries. The cumulative undistributed earnings related to foreign operations were approximately $130,000 at December 31, 2016. It is not practicable to estimate the amount of tax that might be payable. Our intention is to indefinitely reinvest these earnings outside of the United States or to repatriate the earnings only when it is tax effective to do so. Management has determined that no valuation allowance was necessary at both December 31, 2016 and 2015. At December 31, 2016, there were state and other net operating loss carryforwards of $6,872, which expire in varying amounts from 2017 through 2036. These amounts are available to offset future taxable income. There were no federal net operating loss carryforwards at December 31, 2016. We are subject to United States federal income tax, income tax of multiple state jurisdictions and foreign income tax. We are subject to tax audits in the various jurisdictions until the respective statutes of limitations expire. We are no longer subject to United States federal tax examinations for tax years prior to 2013. For the majority of states, we are no longer subject to tax examinations for tax years prior to 2012. As of December 31, 2016 and 2015, the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $3,695 and $3,513, respectively. Of these totals, $2,573 and $2,416, respectively, (net of the federal benefit received from state positions) represent the amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate. Our continuing practice is to recognize penalties within selling, general and administrative expenses and interest related to income tax matters in income tax expense in the consolidated statements of income. As of December 31, 2016 and 2015, the cumulative amount of estimated accrued interest and penalties resulting from such unrecognized tax benefits was $414 and $384, respectively, and is included in deferred income taxes and other liabilities in the accompanying consolidated balance sheets. The changes in gross unrecognized tax benefits are as follows: Balance at December 31, 2013 $ 3,135 Additions based on tax positions related to the current year 751 Reductions due to lapse of applicable statute of limitations (167 ) Balance at December 31, 2014 3,719 Additions based on tax positions related to the current year 871 Reductions due to lapse of applicable statute of limitations and tax assessments (1,077 ) Balance at December 31, 2015 3,513 Additions based on tax positions related to the current year 547 Reductions due to lapse of applicable statute of limitations (365 ) Balance at December 31, 2016 $ 3,695

SHARE-BASED COMPENSATION AND BE

SHARE-BASED COMPENSATION AND BENEFIT PLANS	12 Months Ended
	Dec. 31, 2016
SHARE-BASED COMPENSATION AND BENEFIT PLANS	8. SHARE-BASED COMPENSATION AND BENEFIT PLANS Share-Based Compensation Plans We maintain the 2014 Incentive Compensation Plan (the “2014 Plan”) that provides for the award of a broad variety of share-based compensation alternatives such as non-vested non-qualified non-qualified non-vested Under the 2014 Plan, the number of shares of Common and Class B common stock available for issuance is (i) 2,000,000, plus (ii) 45,421 shares of Common stock or Class B common stock that remained available for grant in connection with awards under the Watsco, Inc. Amended and Restated 2001 Incentive Compensation Plan (the “2001 Plan”) as of the date our shareholders approved the 2014 Plan plus (iii) shares underlying currently outstanding awards issued under the 2001 Plan, which shares become reissuable under the 2014 Plan to the extent that such underlying shares are not issued due to their forfeiture, expiration, termination or otherwise. A total of 293,950 shares of Common stock, net of cancellations, and 326,623 shares of Class B common stock, had been awarded under the 2014 Plan as of December 31, 2016. As of December 31, 2016, 1,424,848 shares of common stock were reserved for future grants under the 2014 Plan. Options under the 2014 Plan vest over two to four years of service and have contractual terms of five years. Awards of non-vested The 2001 Plan expired during 2014; therefore, no additional options may be granted. There were 37,750 options to exercise common stock outstanding under the 2001 Plan at December 31, 2016. Options under the 2001 Plan vest over two to four years of service and have contractual terms of five years. The following is a summary of stock option activity under the 2014 Plan and the 2001 Plan as of and for the year ended December 31, 2016: Options Weighted- Weighted- (in years) Aggregate Options outstanding at December 31, 2015 257,334 $ 102.96 Granted 107,000 140.41 Exercised (63,084 ) 71.18 Forfeited (7,000 ) 127.56 Options outstanding at December 31, 2016 294,250 $ 122.80 3.56 $ 7,451 Options exercisable at December 31, 2016 24,419 $ 109.81 2.92 $ 935 The following is a summary of non-vested Shares Weighted- Non-vested 2,819,196 $ 49.99 Granted 183,144 130.01 Vested (77,450 ) 63.26 Forfeited (26,000 ) 112.79 Non-vested 2,898,890 $ 54.13 The weighted-average grant date fair value of non-vested non-vested During 2016, 30,413 shares of Common and Class B common stock with an aggregate fair market value of $3,967 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of restricted stock. During 2015, 7,206 shares of Common stock with an aggregate fair market value of $889 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of restricted stock. During 2014, 21,028 shares of Common stock with an aggregate fair market value of $2,125 were withheld as payment in lieu of cash to satisfy tax withholding obligations in connection with the vesting of restricted stock. These shares were retired upon delivery. Share-Based Compensation Fair Value Assumptions The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing valuation model based on the weighted-average assumptions noted in the table below. The fair value of each stock option award, which is subject to graded vesting, is expensed, net of estimated forfeitures, on a straight-line basis over the requisite service period for each separately vesting portion of the stock option. We use historical data to estimate stock option forfeitures. The expected term of stock option awards granted represents the period of time that stock option awards granted are expected to be outstanding and was calculated using the simplified method for plain vanilla options, which we believe provides a reasonable estimate of expected life based on our historical data. The risk-free rate for periods within the contractual life of the stock option award is based on the yield curve of a zero-coupon The following table presents the weighted-average assumptions used for stock options granted: Years Ended December 31, 2016 2015 2014 Expected term in years 4.25 4.25 4.25 Risk-free interest rate 1.24 % 1.25 % 1.35 % Expected volatility 18.65 % 20.96 % 22.07 % Expected dividend yield 2.54 % 2.29 % 1.69 % Grant date fair value $ 16.37 $ 17.17 $ 15.75 Exercise of Stock Options The total intrinsic value of stock options exercised during 2016, 2015 and 2014 was $4,490, $7,525 and $3,746, respectively. Cash received from the exercise of stock options during 2016, 2015 and 2014 was $4,447, $4,850 and $3,324, respectively. During 2016, 2015 and 2014, 348 shares of Common stock with an aggregate fair market value of $51, 26,006 shares of Class B common stock with an aggregate fair market value of $3,251 and 5,454 shares of Class B common stock with an aggregate fair market value of $490, respectively, were withheld as payment in lieu of cash for stock option exercises and related tax withholdings. These shares were retired upon delivery. Share-Based Compensation Expense The following table provides information on share-based compensation expense: Years Ended December 31, 2016 2015 2014 Stock options $ 1,149 $ 952 $ 801 Non-vested 11,170 11,644 10,672 Share-based compensation expense $ 12,319 $ 12,596 $ 11,473 At December 31, 2016, there was $2,096 of unrecognized pre-tax At December 31, 2016, there was $100,397 of unrecognized pre-tax non-vested non-vested non-vested Employee Stock Purchase Plan The Watsco, Inc. Fourth Amended and Restated 1996 Qualified Employee Stock Purchase Plan (the “ESPP”) provides for up to 1,500,000 shares of Common stock to be available for purchase by our full-time employees with at least 90 days of service. The ESPP allows participating employees to purchase shares of Common stock at a 5% discount to the fair market value at specified times. During 2016, 2015 and 2014, employees purchased 5,956, 6,463 and 6,995 shares of Common stock at an average price of $125.84, $112.53 and $90.89 per share, respectively. Cash dividends received by the ESPP were reinvested in Common stock and resulted in the issuance of 3,442, 3,183 and 2,953 additional shares during 2016, 2015 and 2014, respectively. We received net proceeds of $1,206, $1,107 and $921, respectively, during 2016, 2015 and 2014, for shares of our Common stock purchased under the ESPP. At December 31, 2016, 496,160 shares remained available for purchase under the ESPP. 401(k) Plan We have a profit sharing retirement plan for our employees that is qualified under Section 401(k) of the Internal Revenue Code. Annual matching contributions are made based on a percentage of eligible employee compensation deferrals. The contribution has historically been made with the issuance of Common stock to the plan on behalf of our employees. For the years ended December 31, 2016, 2015 and 2014, we issued 20,045, 18,343 and 18,309 shares of Common stock, respectively, to the plan, representing the Common stock discretionary matching contribution of $2,348, $1,963 and $1,759, respectively.

PURCHASE OF ADDITIONAL OWNERSHI

PURCHASE OF ADDITIONAL OWNERSHIP INTEREST IN JOINT VENTURES	12 Months Ended
	Dec. 31, 2016
PURCHASE OF ADDITIONAL OWNERSHIP INTEREST IN JOINT VENTURES	9. PURCHASE OF ADDITIONAL OWNERSHIP INTEREST IN JOINT VENTURES On November 29, 2016, we purchased an additional 10% ownership interest in Carrier Enterprise (“Carrier Enterprise II”) for cash consideration of $42,909, and, on February 13, 2017, we purchased an additional 10% ownership interest in Carrier Enterprise II for cash consideration of $42,688, following which we have an 80% controlling interest in Carrier Enterprise II. On July 1, 2014, we exercised our second option to acquire an additional 10% ownership interest in Carrier Enterprise, LLC (“Carrier Enterprise I”) for cash consideration of $87,735, following which we have an 80% controlling interest in Carrier Enterprise I. Neither we nor Carrier has any remaining options to purchase additional ownership interests in Carrier Enterprise I.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2016
GOODWILL AND OTHER INTANGIBLE ASSETS	10. GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill are as follows: Balance at December 31, 2014 $ 387,311 Foreign currency translation adjustment (9,001 ) Balance at December 31, 2015 378,310 Foreign currency translation adjustment 1,427 Balance at December 31, 2016 $ 379,737 Other intangible assets are comprised of the following: December 31, Estimated Useful Lives 2016 2015 Indefinite lived intangible assets - Trade names, trademarks and distribution rights $ 120,288 $ 118,205 Finite lived intangible assets: Customer relationships 10-15 years 70,194 68,981 Trade name 10 years 1,150 1,150 Non-compete 7 years 369 369 Accumulated amortization (33,437 ) (28,224 ) Finite lived intangible assets, net 38,276 42,276 $ 158,564 $ 160,481 Amortization expense related to finite lived intangible assets included in selling, general and administrative expenses for the years ended December 31, 2016, 2015 and 2014, were $5,213, $5,315 and $5,769, respectively. Amortization of finite lived intangible assets for 2017 through 2020 is expected to be approximately $5,200 per year and in 2021 is expected to be approximately $4,300.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2016
SHAREHOLDERS' EQUITY	11. SHAREHOLDERS’ EQUITY Common Stock Common stock and Class B common stock share equally in earnings and are identical in most other respects except (i) Common stock is entitled to one vote on most matters and each share of Class B common stock is entitled to ten votes; (ii) shareholders of Common stock are entitled to elect 25% of the Board of Directors (rounded up to the nearest whole number) and Class B shareholders are entitled to elect the balance of the Board of Directors; (iii) cash dividends may be paid on Common stock without paying a cash dividend on Class B common stock and no cash dividend may be paid on Class B common stock unless at least an equal cash dividend is paid on Common stock and (iv) Class B common stock is convertible at any time into Common stock on a one-for-one Preferred Stock We are authorized to issue preferred stock with such designation, rights and preferences as may be determined from time to time by our Board of Directors. Accordingly, the Board of Directors is empowered, without shareholder approval, to issue preferred stock with dividend, liquidation, conversion, voting or other rights which could adversely affect the voting power or other rights of the holders of our Common stock and Class B common stock and, in certain instances, could adversely affect the market price of this stock. We had no preferred stock outstanding at December 31, 2016 or 2015. Stock Repurchase Plan In September 1999, our Board of Directors authorized the repurchase, at management’s discretion, of up to 7,500,000 shares of common stock in the open market or via private transactions. Shares repurchased under the program are accounted for using the cost method and result in a reduction of shareholders’ equity. No shares were repurchased during 2016, 2015 or 2014. In aggregate, 6,322,650 shares of Common stock and 48,263 shares of Class B common stock have been repurchased at a cost of $114,425 since the inception of the program. At December 31, 2016, there were 1,129,087 shares remaining authorized for repurchase under the program.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2016
FINANCIAL INSTRUMENTS	12. FINANCIAL INSTRUMENTS Recorded Financial Instruments Recorded financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, the current portion of long-term obligations, borrowings under our revolving credit agreement and debt instruments included in other long-term obligations. At December 31, 2016 and 2015, the fair values of cash and cash equivalents, accounts receivable, accounts payable and the current portion of long-term obligations approximated their carrying values due to the short-term nature of these instruments. The fair values of variable rate borrowings under our revolving credit agreement and debt instruments included in long-term obligations also approximate their carrying value based upon interest rates available for similar instruments with consistent terms and remaining maturities. Off-Balance At December 31, 2016 and 2015, we were contingently liable under standby letters of credit aggregating $2,430 and $2,690, respectively, which are primarily used as collateral to cover any contingency related to additional risk assessments pertaining to our self-insurance programs. Additionally, at December 31, 2016 and 2015, we were contingently liable under various performance bonds aggregating approximately $8,000 and $4,000, respectively, which are used as collateral to cover any contingencies related to our nonperformance under agreements with certain customers. We do not expect that any material losses or obligations will result from the issuance of the standby letters of credit or performance bonds because we expect to meet our obligations under our self-insurance programs and to certain customers in the ordinary course of business. Accordingly, the estimated fair value of these instruments is zero. Concentrations of Credit Risk Financial instruments which potentially subject us to concentrations of credit risk consist principally of accounts receivable. Concentrations of credit risk are limited due to the large number of customers comprising the customer base and their dispersion across many different geographical regions. We also have access to credit insurance programs which are used as an additional means to mitigate credit risk.

DERIVATIVES

DERIVATIVES	12 Months Ended
	Dec. 31, 2016
DERIVATIVES	13. DERIVATIVES We enter into foreign currency forward contracts to offset the earnings impact that foreign exchange rate fluctuations would otherwise have on certain monetary liabilities that are denominated in nonfunctional currencies. Cash Flow Hedging Instruments We enter into foreign currency forward contracts that are designated as cash flow hedges. The settlement of these derivatives results in reclassifications from accumulated other comprehensive loss to earnings for the period in which the settlement of these instruments occur. The maximum period for which we hedge our cash flow using these instruments is 12 months. Accordingly, at December 31, 2016, all of our open foreign currency forward contracts had maturities of one year or less. The total notional value of our foreign currency exchange contracts designated as cash flow hedges at December 31, 2016 was $33,200, and such contracts have varying terms expiring through September 2017. The impact from foreign exchange derivative instruments designated as cash flow hedges were as follows: Years Ended December 31, 2016 2015 (Loss) gain recorded in accumulated other comprehensive loss $ (1,321 ) $ 3,716 Loss (gain) reclassified from accumulated other comprehensive loss into earnings $ 442 $ (2,730 ) At December 31, 2016, we expected an estimated $490 pre-tax Derivatives Not Designated as Hedging Instruments We have also entered into foreign currency forward contracts that are either not designated as hedges or did not qualify for hedge accounting. These derivative instruments were effective economic hedges for all of the periods presented. The fair value gains and losses on these contracts are recognized in earnings as a component of selling, general and administrative expenses. The total notional value of our foreign currency exchange contracts not designated as hedging instruments at December 31, 2016 was $4,650, and such contracts have varying terms expiring through March 2017. We recognized (losses) gains of $(306), $2,552 and $142 from foreign currency forward contracts not designated as hedging instruments in our consolidated statements of income for 2016, 2015 and 2014, respectively. The following table summarizes the fair value of derivative instruments, which consist solely of foreign currency forward contracts, included in other current assets and accrued expenses and other current liabilities in our consolidated balance sheets. See Note 14. Asset Derivatives Liability Derivatives December 31, 2016 2015 2016 2015 Derivatives designated as hedging instruments $ 227 $ 923 $ 35 $ 3 Derivatives not designated as hedging instruments 14 326 4 4 Total derivative instruments $ 241 $ 1,249 $ 39 $ 7

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2016
FAIR VALUE MEASUREMENTS	14. FAIR VALUE MEASUREMENTS The following tables present our assets and liabilities carried at fair value that are measured on a recurring basis: Total Fair Value Measurements Balance Sheet Location Level 1 Level 2 Level 3 Assets: Available-for-sale Other assets $ 281 $ 281 — — Derivative financial instruments Other current assets $ 241 — $ 241 — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 39 — $ 39 — Total Fair Value Measurements Balance Sheet Location Level 1 Level 2 Level 3 Assets: Available-for-sale Other assets $ 254 $ 254 — — Derivative financial instruments Other current assets $ 1,249 — $ 1,249 — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 7 — $ 7 — The following is a description of the valuation techniques used for these assets and liabilities, as well as the level of input used to measure fair value: Available-for-sale securities Derivative financial instruments There were no transfers in or out of Level 1 and Level 2 during 2016 or 2015.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2016
COMMITMENTS AND CONTINGENCIES	15. COMMITMENTS AND CONTINGENCIES Litigation, Claims and Assessments In December 2015, a purported Watsco shareholder, Nelson Gaskins, filed a derivative lawsuit in the U.S. District Court for the Southern District of Florida against Watsco’s Board of Directors. The Company is a nominal defendant. The lawsuit alleges breach of fiduciary duties regarding CEO incentive compensation and seeks to recover alleged excessive incentive compensation and unspecified damages. The defendants believe the claims are entirely without merit and intend to vigorously defend against them. We believe the ultimate outcome of this matter will not have a material adverse effect on our consolidated results of operations and consolidated financial position. We are involved in litigation incidental to the operation of our business. We vigorously defend all matters in which we or our subsidiaries are named defendants and, for insurable losses, maintain significant levels of insurance to protect against adverse judgments, claims or assessments that may affect us. Although the adequacy of existing insurance coverage and the outcome of any legal proceedings cannot be predicted with certainty, based on the current information available, we do not believe the ultimate liability associated with any known claims or litigation will have a material adverse effect on our financial condition or results of operations. Self-Insurance Self-insurance reserves are maintained relative to company-wide casualty insurance and health benefit programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the self-insurance liabilities and related reserves, management considers a number of factors, which include historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. Management reviews its assumptions with its independent third-party actuaries to evaluate whether the self-insurance reserves are adequate. If actual claims or adverse development of loss reserves occur and exceed these estimates, additional reserves may be required. Reserves in the amounts of $2,951 and $3,214 at December 31, 2016 and 2015, respectively, were established related to such programs and are included in accrued expenses and other current liabilities in our consolidated balance sheets. Variable Interest Entity As of December 31, 2016, in conjunction with our casualty insurance programs, limited equity interests are held in a captive insurance entity. The programs permit us to self-insure a portion of losses, to gain access to a wide array of safety-related services, to pool insurance risks and resources in order to obtain more competitive pricing for administration and reinsurance and to limit risk of loss in any particular year. The entity meets the definition of Variable Interest Entity (“VIE”); however, we do not meet the requirements to include this entity in the consolidated financial statements. The maximum exposure to loss related to our involvement with this entity is limited to approximately $4,300. See “Self-Insurance” above for further information on commitments associated with the insurance programs and Note 12, under the caption “Off-Balance Operating Leases We are obligated under various non-cancelable At December 31, 2016, future minimum payments under non-cancelable 2017 $ 56,639 2018 48,420 2019 35,926 2020 21,650 2021 13,184 Thereafter 13,362 Total minimum payments $ 189,181 Rental expense for the years ended December 31, 2016, 2015 and 2014, was $83,260, $82,581 and $81,155, respectively. Purchase Obligations At December 31, 2016, we were obligated under various non-cancelable

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2016
RELATED PARTY TRANSACTIONS	16. RELATED PARTY TRANSACTIONS Purchases from Carrier and its affiliates comprised 62%, 62% and 61% of all inventory purchases made during 2016, 2015 and 2014, respectively. At December 31, 2016 and 2015, approximately $63,000 and $85,000, respectively, was payable to Carrier and its affiliates, net of receivables. Our joint ventures with Carrier also sell HVAC products to Carrier and its affiliates. Revenues in our consolidated statements of income for 2016, 2015 and 2014 included approximately $56,000, $62,000 and $38,000, respectively, of sales to Carrier and its affiliates. We believe these transactions are conducted on terms equivalent to an arm’s-length A member of our Board of Directors is the Chairman and Chief Executive Officer of Moss & Associates LLC (“Moss & Associates”), which serves as our general contractor for the remodeling of our corporate headquarters and receives customary payments for these services. Moss & Associates was paid $291 for services performed during 2016 and $109 was payable at December 31, 2016.

INFORMATION ABOUT GEOGRAPHIC AR

INFORMATION ABOUT GEOGRAPHIC AREAS	12 Months Ended
	Dec. 31, 2016
INFORMATION ABOUT GEOGRAPHIC AREAS	17. INFORMATION ABOUT GEOGRAPHIC AREAS Our operations are primarily within the United States, including Puerto Rico, Canada and Mexico. Products are also sold from the United States on an export-only basis to portions of Latin America and the Caribbean Basin. The following tables set forth revenues and long-lived assets by geographical area: Years Ended December 31, 2016 2015 2014 Revenues: United States $ 3,813,204 $ 3,710,977 $ 3,525,176 Canada 267,220 263,908 300,289 Mexico 140,278 138,354 119,075 Total revenues $ 4,220,702 $ 4,113,239 $ 3,944,540 December 31, 2016 2015 Long-Lived Assets: United States $ 467,728 $ 441,656 Canada 155,758 154,437 Mexico 5,317 5,413 Total long-lived assets $ 628,803 $ 601,506 Revenues are attributed to countries based on the location of the store from which the sale occurred. Long-lived assets consist of property and equipment, goodwill and intangible assets.

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	12 Months Ended
	Dec. 31, 2016
SUPPLEMENTAL CASH FLOW INFORMATION	18. SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow information was as follows: Years Ended December 31, 2016 2015 2014 Interest paid $ 3,362 $ 4,993 $ 4,393 Income taxes net of refunds $ 99,006 $ 103,261 $ 82,850

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2016
SUBSEQUENT EVENTS	19. SUBSEQUENT EVENTS On January 3, 2017, our Board of Directors declared a regular quarterly cash dividend of $1.05 per share of Common and Class B common stock that was paid on January 31, 2017 to shareholders of record as of January 17, 2017. On January 24, 2017, we entered into an amendment to our credit agreement, which reduced the letter of credit subfacility from $50,000 to $10,000 and modified certain definitions. See Note 6. On February 13, 2017, we purchased an additional 10% ownership interest in Carrier Enterprise II for cash consideration of $42,688, following which we have an 80% controlling interest in Carrier Enterprise II. The source of cash was borrowings under our revolving credit agreement. See Note 9.

SELECTED QUARTERLY FINANCIAL DA

SELECTED QUARTERLY FINANCIAL DATA	12 Months Ended
	Dec. 31, 2016
SELECTED QUARTERLY FINANCIAL DATA	WATSCO, INC. AND SUBSIDIARIES SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (In thousands, except per share data) 1st 2nd 3rd 4th Total Year Ended December 31, 2016 Revenues (1) $ 851,424 $ 1,214,435 $ 1,241,232 $ 913,611 $ 4,220,702 Gross profit $ 212,447 $ 291,861 $ 302,204 $ 228,072 $ 1,034,584 Net income attributable to Watsco, Inc. $ 25,537 $ 64,621 $ 63,099 $ 29,553 $ 182,810 Earnings per share for Common and Class B common stock (2): Basic $ 0.71 $ 1.82 $ 1.78 $ 0.81 $ 5.16 Diluted $ 0.71 $ 1.82 $ 1.78 $ 0.81 $ 5.15 Year Ended December 31, 2015 Revenues (1) $ 808,972 $ 1,223,439 $ 1,177,012 $ 903,816 $ 4,113,239 Gross profit $ 204,225 $ 295,245 $ 285,846 $ 222,041 $ 1,007,357 Net income attributable to Watsco, Inc. $ 23,048 $ 65,423 $ 57,968 $ 26,490 $ 172,929 Earnings per share for Common and Class B common stock (2): Basic $ 0.65 $ 1.86 $ 1.64 $ 0.75 $ 4.91 Diluted $ 0.65 $ 1.85 $ 1.64 $ 0.75 $ 4.90 (1) Sales of residential central air conditioners, heating equipment and parts and supplies are seasonal. Demand related to the residential central air conditioning replacement market is typically highest in the second and third quarters, and demand for heating equipment is usually highest in the fourth quarter. Demand related to the new construction sectors throughout most of the markets is fairly even during the year except for dependence on housing completions and related weather and economic conditions. (2) Quarterly and year-to-date earnings per share are calculated on an individual basis; therefore, the sum of earnings per share amounts for the quarters may not equal earnings per share amounts for the year.

SUMMARY OF SIGNIFICANT ACCOUN29

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation	Organization, Consolidation and Presentation Watsco, Inc. (collectively with its subsidiaries, “Watsco,” “we,” “us” or “our”) was incorporated in Florida in 1956 and is the largest distributor of air conditioning, heating and refrigeration equipment and related parts and supplies (“HVAC/R”) in the HVAC/R distribution industry in North America. At December 31, 2016, we operated from 565 locations in 37 U.S. states, Canada, Mexico and Puerto Rico with additional market coverage on an export basis to portions of Latin America and the Caribbean. The consolidated financial statements include the accounts of Watsco, all of its wholly owned subsidiaries and the accounts of three joint ventures with Carrier Corporation (“Carrier”), in each of which Watsco maintains a controlling interest. All significant intercompany balances and transactions have been eliminated in consolidation.
Foreign Currency Translation and Transactions	Foreign Currency Translation and Transactions The functional currency of our operations in Canada is the Canadian dollar. Foreign currency denominated assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date, and income and expense items are translated at the average exchange rates in effect during the applicable period. The aggregate effect of foreign currency translation is recorded in accumulated other comprehensive loss in our consolidated balance sheets. Our net investment in our Canadian operations is recorded at the historical rate and the resulting foreign currency translation adjustments are included in accumulated other comprehensive loss in our consolidated balance sheets. Gains or losses resulting from transactions denominated in U.S. dollars are recognized in earnings primarily within cost of sales in our consolidated statements of income. Our operations in Mexico consider their functional currency to be the U.S. dollar because the majority of their transactions are denominated in U.S. dollars. Gains or losses resulting from transactions denominated in Mexican pesos are recognized in earnings primarily within selling, general and administrative expenses in our consolidated statements of income.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the reporting period. Significant estimates include valuation reserves for accounts receivable, inventories and income taxes, reserves related to self-insurance programs and the valuation of goodwill and indefinite lived intangible assets. While we believe that these estimates are reasonable, actual results could differ from such estimates.
Cash Equivalents	Cash Equivalents All highly liquid instruments purchased with original maturities of three months or less are considered to be cash equivalents.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable primarily consist of trade receivables due from customers and are stated at the invoiced amount less an allowance for doubtful accounts. An allowance for doubtful accounts is maintained for estimated losses resulting from the inability of customers to make required payments. When preparing these estimates, we consider a number of factors, including the aging of a customer’s account, past transactions with customers, creditworthiness of specific customers, historical trends and other information. Upon determination that an account is uncollectible, the receivable balance is written off. At December 31, 2016 and 2015, the allowance for doubtful accounts totaled $6,169 and $5,305, respectively.
Inventories	Inventories Inventories consist of air conditioning, heating and refrigeration equipment and related parts and supplies and are valued at the lower of cost or market using a weighted-average cost basis and the first-in, first-out
Vendor Rebates	Vendor Rebates We have arrangements with several vendors that provide rebates payable to us when we achieve any of a number of measures, generally related to the volume level of purchases. We account for such rebates as a reduction of inventory until we sell the product, at which time such rebates are reflected as a reduction of cost of sales in our consolidated statements of income. Throughout the year, we estimate the amount of the rebate based on our estimate of purchases to date relative to the purchase levels that mark our progress toward earning the rebates. We continually revise our estimates of earned vendor rebates based on actual purchase levels. At December 31, 2016 and 2015, we had $9,926 and $8,086, respectively, of rebates recorded as a reduction of inventory. Substantially all vendor rebate receivables are collected within three months immediately following the end of the year.
Marketable Securities	Marketable Securities Investments in marketable equity securities are classified as available-for-sale
Property and Equipment	Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization of property and equipment is computed using the straight-line method. Buildings and improvements are depreciated or amortized over estimated useful lives ranging from 3-40 5-7 3-10
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill is recorded when the purchase price paid for an acquisition exceeds the fair value of the net identified tangible and intangible assets acquired. We evaluate goodwill for impairment annually or more frequently when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. We test goodwill for impairment by first comparing the fair value of our reporting unit to its carrying value. If the fair value is determined to be less than the carrying value, a second step is performed to measure the amount of impairment loss. Other intangible assets primarily consist of the value of trade names and trademarks, distributor agreements, customer relationships and non-compete We perform our annual impairment tests each year and have determined there to be no impairment for any of the periods presented. There were no events or circumstances identified from the date of our assessment that would require an update to our annual impairment tests.
Long-Lived Assets	Long-Lived Assets Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability is evaluated by determining whether the amortization of the balance over its remaining life can be recovered through undiscounted future operating cash flows. We measure the impairment loss based on projected discounted cash flows using a discount rate reflecting the average cost of funds and compared to the asset’s carrying value. As of December 31, 2016, there were no such events or circumstances.
Fair Value Measurements	Fair Value Measurements We carry various assets and liabilities at fair value in the consolidated balance sheets. Fair value is defined as the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements are classified based on the following fair value hierarchy: Level 1 Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Observable inputs other than Level 1 prices such as quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active; or model-driven valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs for the asset or liability. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability.
Revenue Recognition	Revenue Recognition Revenue primarily consists of sales of air conditioning, heating and refrigeration equipment and related parts and supplies and is recorded when shipment of products or delivery of services has occurred. Substantially all customer returns relate to products that are returned under warranty obligations underwritten by manufacturers, effectively mitigating our risk of loss for customer returns. Taxes collected from our customers and remitted to governmental authorities are presented in our consolidated statements of income on a net basis.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred. Advertising expense for the years ended December 31, 2016, 2015 and 2014, were $22,242, $21,150 and $19,754, respectively.
Shipping and Handling	Shipping and Handling Shipping and handling costs associated with inbound freight are capitalized to inventories and relieved through cost of sales as inventories are sold. Shipping and handling costs associated with the delivery of products is included in selling, general and administrative expenses. Shipping and handling costs included in selling, general and administrative expenses for the years ended December 31, 2016, 2015 and 2014, were $42,809, $41,345 and $43,324, respectively.
Share-Based Compensation	Share-Based Compensation The fair value of stock option and non-vested paid-in
Income Taxes	Income Taxes We record United States federal, state and foreign income taxes currently payable, as well as deferred taxes due to temporary differences between reporting income and expenses for financial statement purposes versus tax purposes. Deferred tax assets and liabilities reflect the temporary differences between the financial statement and income tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates is recognized as income or expense in the period that includes the enactment date. We and our eligible subsidiaries file a consolidated United States federal income tax return. As income tax returns are generally not filed until well after the closing process for the December 31 financial statements is complete, the amounts recorded at December 31 reflect estimates of what the final amounts will be when the actual income tax returns are filed for that calendar year. In addition, estimates are often required with respect to, among other things, the appropriate state income tax rates to use in the various states that we and our subsidiaries are required to file, the potential utilization of operating loss carryforwards and valuation allowances required, if any, for tax assets that may not be realizable in the future. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the “more-likely-than-not”
Earnings per Share	Earnings per Share We compute earnings per share using the two-class two-class non-vested non-forfeitable two-class two-class Diluted earnings per share reflects the dilutive effect of potential common shares from stock options. The dilutive effect of outstanding stock options is computed using the treasury stock method, which assumes any proceeds that could be obtained upon the exercise of stock options, would be used to purchase common stock at the average market price for the period. The assumed proceeds include the purchase price the optionee pays, the windfall tax benefit that we receive upon assumed exercise and the unrecognized compensation expense at the end of each period.
Derivative Instruments and Hedging Activity	Derivative Instruments and Hedging Activity We have used derivative instruments, including forward contracts and swaps, to manage our exposure to fluctuations in foreign currency exchange rates and interest rates. The use of these derivative instruments modifies the exposure of these risks with the intent to reduce the risk or cost to us. We use derivative instruments as risk management tools and not for trading purposes. All derivatives, whether designated as hedging relationships or not, are recorded on the balance sheet at fair value. Cash flows from derivative instruments are classified in the consolidated statements of cash flows in the same category as the cash flows from the items subject to the designated hedge or undesignated (economic) hedge relationships. The hedging designation may be classified as one of the following: No Hedging Designation. Cash Flow Hedge. Fair Value Hedge. See Note 13 for additional information pertaining to derivative instruments.
New Accounting Standards	New Accounting Standards Revenue Recognition In May 2014, the Financial Accounting Standards Board (the “FASB”) issued a standard on revenue recognition that provides a single, comprehensive revenue recognition model for all contracts with customers. The standard is principle-based and provides a five-step model to determine the measurement of revenue and timing of when it is recognized. This standard will be applied using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients or (ii) a modified retrospective approach with the cumulative effect of initially adopting the standard recognized at the date of adoption, which requires additional footnote disclosures. This standard is effective for our interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. We will adopt this guidance on January 1, 2018. While we are currently evaluating the method of adoption and the impact of the provisions of this standard, we expect similar performance obligations to result under this guidance as compared with deliverables and separate units of accounting currently identified. As a result, we expect the timing of our revenue recognition to generally remain the same. Presentation of Debt Issuance Costs In April 2015, the FASB issued guidance that will require that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, rather than as an asset. This guidance is effective retrospectively for interim and annual reporting periods beginning after December 15, 2015. The adoption of this guidance did not have an impact on our consolidated financial statements. Measurement of Inventory In July 2015, the FASB issued guidance that simplifies the measurement of inventory by replacing the lower of cost or market test with a lower of cost and net realizable value test. The guidance applies to all inventory that is measured using first-in, first-out Classification of Deferred Taxes In November 2015, the FASB issued guidance that requires deferred tax assets and liabilities to be classified as noncurrent in a classified balance sheet. This guidance can be applied either prospectively or retrospectively and will be effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. We do not expect the adoption of this guidance to have a material impact to our consolidated balance sheets. Leases In February 2016, the FASB issued guidance on accounting for leases, which requires lessees to recognize most leases on their balance sheets for the rights and obligations created by those leases. The guidance requires enhanced disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. This guidance will be applied using a modified retrospective approach and is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. We will adopt this guidance on January 1, 2019. While we are still evaluating the impact of adopting this guidance on our consolidated financial statements, including the option to elect certain practical expedients, we expect that upon adoption the right-of-use Share-Based Payments In March 2016, the FASB issued amended guidance related to employee share-based payment accounting. The guidance requires that all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. The guidance increases the amount companies can withhold to cover income taxes on awards without triggering liability classification for shares used to satisfy statutory income tax withholding obligations and requires application of a modified retrospective transition method. The amended guidance will be effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted if all provisions are adopted in the same period. We elected to early adopt the amended guidance during the quarter ended June 30, 2016, which required us to reflect any adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. The primary impact of adoption was the recognition of excess tax benefits in our provision for income taxes rather than paid-in Adoption of the amended guidance resulted in the recognition of excess tax benefits in our provision for income taxes rather than paid-in Quarter Ended March 31, 2016 As Reported As Adjusted Income Statement: Income taxes $ 15,508 $ 14,654 Net income $ 34,174 $ 35,028 Diluted earnings per share $ 0.71 $ 0.74 Diluted weighted-average common shares outstanding 32,537,225 32,546,314 Balance Sheet: Paid-in $ 610,285 $ 609,431 Cash Flow Statement: Net cash provided by operating activities $ 41,852 $ 42,706 Net cash used in financing activities $ (41,638 ) $ (42,492 )
Self-Insurance	Self-Insurance Self-insurance reserves are maintained relative to company-wide casualty insurance and health benefit programs. The level of exposure from catastrophic events is limited by the purchase of stop-loss and aggregate liability reinsurance coverage. When estimating the self-insurance liabilities and related reserves, management considers a number of factors, which include historical claims experience, demographic factors, severity factors and valuations provided by independent third-party actuaries. Management reviews its assumptions with its independent third-party actuaries to evaluate whether the self-insurance reserves are adequate. If actual claims or adverse development of loss reserves occur and exceed these estimates, additional reserves may be required. Reserves in the amounts of $2,951 and $3,214 at December 31, 2016 and 2015, respectively, were established related to such programs and are included in accrued expenses and other current liabilities in our consolidated balance sheets.

SUMMARY OF SIGNIFICANT ACCOUN30

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2016
Adoption of Amended Guidance Impact on Previously Reported Quarterly Results	Adoption of the amended guidance resulted in the recognition of excess tax benefits in our provision for income taxes rather than paid-in Quarter Ended March 31, 2016 As Reported As Adjusted Income Statement: Income taxes $ 15,508 $ 14,654 Net income $ 34,174 $ 35,028 Diluted earnings per share $ 0.71 $ 0.74 Diluted weighted-average common shares outstanding 32,537,225 32,546,314 Balance Sheet: Paid-in $ 610,285 $ 609,431 Cash Flow Statement: Net cash provided by operating activities $ 41,852 $ 42,706 Net cash used in financing activities $ (41,638 ) $ (42,492 )

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2016
Schedule of Basic and Diluted Earnings Per Common Share	The following table presents the calculation of basic and diluted earnings per share for our Common and Class B common stock: Years Ended December 31, 2016 2015 2014 Basic Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 182,810 $ 172,929 $ 151,387 Less: distributed and undistributed earnings allocated to non-vested 14,806 13,634 11,444 Earnings allocated to Watsco, Inc. shareholders $ 168,004 $ 159,295 $ 139,943 Weighted-average common shares outstanding - Basic 32,582,385 32,435,961 32,308,073 Basic earnings per share for Common and Class B common stock $ 5.16 $ 4.91 $ 4.33 Allocation of earnings for Basic: Common stock $ 154,021 $ 146,037 $ 128,214 Class B common stock 13,983 13,258 11,729 $ 168,004 $ 159,295 $ 139,943 Diluted Earnings per Share: Net income attributable to Watsco, Inc. shareholders $ 182,810 $ 172,929 $ 151,387 Less: distributed and undistributed earnings allocated to non-vested 14,801 13,626 11,435 Earnings allocated to Watsco, Inc. shareholders $ 168,009 $ 159,303 $ 139,952 Weighted-average common shares outstanding - Basic 32,582,385 32,435,961 32,308,073 Effect of dilutive stock options 34,119 44,395 50,781 Weighted-average common shares outstanding - Diluted 32,616,504 32,480,356 32,358,854 Diluted earnings per share for Common and Class B common stock $ 5.15 $ 4.90 $ 4.32

OTHER COMPREHENSIVE GAIN (LOS32

OTHER COMPREHENSIVE GAIN (LOSS) (Tables)	12 Months Ended
	Dec. 31, 2016
Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Gain (Loss)	The tax effects allocated to each component of other comprehensive loss were as follows: Years Ended December 31, 2016 2015 2014 Foreign currency translation adjustment $ 6,211 $ (39,378 ) $ (21,117 ) Unrealized (loss) gain on cash flow hedging instruments (1,321 ) 3,716 384 Income tax benefit (expense) 356 (1,003 ) (104 ) Unrealized (loss) gain on cash flow hedging instruments, net of tax (965 ) 2,713 280 Reclassification of loss (gain) on cash flow hedging instruments into earnings 442 (2,730 ) — Income tax (benefit) expense (119 ) 737 — Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax 323 (1,993 ) — Unrealized gain (loss) on available-for-sale 27 (12 ) 1 Income tax (expense) benefit (13 ) 4 — Unrealized gain (loss) on available-for-sale 14 (8 ) 1 Other comprehensive gain (loss) $ 5,583 $ (38,666 ) $ (20,836 )
Schedule of Accumulated Other Comprehensive Loss	The changes in each component of accumulated other comprehensive loss, net of tax, were as follows: Years Ended December 31, 2016 2015 2014 Foreign currency translation adjustment: Beginning balance $ (47,204 ) $ (23,623 ) $ (11,181 ) Current period other comprehensive gain (loss) 3,745 (23,581 ) (12,442 ) Ending balance (43,459 ) (47,204 ) (23,623 ) Cash flow hedging instruments: Beginning balance 600 168 — Current period other comprehensive (loss) income (579 ) 1,628 168 Less reclassification adjustment 194 (1,196 ) — Ending balance 215 600 168 Available-for-sale Beginning balance (300 ) (292 ) (293 ) Current period other comprehensive income (loss) 14 (8 ) 1 Ending balance (286 ) (300 ) (292 ) Accumulated other comprehensive loss, net of tax $ (43,530 ) $ (46,904 ) $ (23,747 )

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2016
Property and Equipment, Net	Property and equipment, net, consists of: December 31, 2016 2015 Land $ 820 $ 820 Buildings and improvements 71,082 69,675 Machinery, vehicles and equipment 74,640 43,150 Furniture and fixtures 15,090 14,311 Computer hardware and software 42,515 38,876 204,147 166,832 Accumulated depreciation and amortization (113,645 ) (104,117 ) $ 90,502 $ 62,715

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
Components of Income Tax Expense	The components of income tax expense from our wholly-owned operations and investments and our controlling interest in joint ventures with Carrier are as follows: Years Ended December 31, 2016 2015 2014 U.S. Federal $ 86,719 $ 85,585 $ 74,561 State 9,801 9,431 10,325 Foreign 9,416 9,661 6,953 $ 105,936 $ 104,677 $ 91,839 Current $ 103,216 $ 99,990 $ 91,550 Deferred 2,720 4,687 289 $ 105,936 $ 104,677 $ 91,839
Reconciliation of Effective Income Tax Rate	Following is a reconciliation of the effective income tax rate: Years Ended December 31, 2016 2015 2014 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit and other 2.1 2.3 3.0 Excess tax benefits from share-based compensation (1.0 ) — — Tax effects on foreign income (0.1 ) (0.3 ) (1.0 ) Effective income tax rate attributable to Watsco, Inc. 36.0 37.0 37.0 Taxes attributable to non-controlling (5.0 ) (5.4 ) (6.4 ) Effective income tax rate 31.0 % 31.6 % 30.6 %
Significant Components of Current and Long-Term Deferred Tax Assets and Liabilities	The following is a summary of the significant components of our current and long-term deferred tax assets and liabilities: December 31, 2016 2015 Current deferred tax assets: Capitalized inventory costs and inventory reserves $ 2,301 $ 1,794 Allowance for doubtful accounts 1,379 1,053 Self-insurance reserves 500 519 Other current deferred tax assets 1,778 1,921 Total current deferred tax assets (1) 5,958 5,287 Long-term deferred tax assets: Share-based compensation 26,239 23,603 Other long-term deferred tax assets 449 352 Net operating loss carryforwards 209 207 26,897 24,162 Valuation allowance — — Total long-term deferred tax assets (2) 26,897 24,162 Current deferred tax liabilities: Other current deferred tax liabilities (473 ) (686 ) Total current deferred tax liabilities (1) (473 ) (686 ) Long-term deferred tax liabilities: Deductible goodwill (88,581 ) (83,868 ) Depreciation (5,883 ) (3,774 ) Other long-term deferred tax liabilities (1,160 ) (1,533 ) Total long-term deferred tax liabilities (2) (95,624 ) (89,175 ) Net deferred tax liabilities $ (63,242 ) $ (60,412 ) (1) Current deferred tax assets and liabilities have been included in the consolidated balance sheets in other current assets. (2) Long-term deferred tax assets and liabilities have been included in the consolidated balance sheets in deferred income taxes and other liabilities.
Changes in Gross Unrecognized Tax Benefits	The changes in gross unrecognized tax benefits are as follows: Balance at December 31, 2013 $ 3,135 Additions based on tax positions related to the current year 751 Reductions due to lapse of applicable statute of limitations (167 ) Balance at December 31, 2014 3,719 Additions based on tax positions related to the current year 871 Reductions due to lapse of applicable statute of limitations and tax assessments (1,077 ) Balance at December 31, 2015 3,513 Additions based on tax positions related to the current year 547 Reductions due to lapse of applicable statute of limitations (365 ) Balance at December 31, 2016 $ 3,695

SHARE-BASED COMPENSATION AND 35

SHARE-BASED COMPENSATION AND BENEFIT PLANS (Tables)	12 Months Ended
	Dec. 31, 2016
Summary of Stock Option Activity	The following is a summary of stock option activity under the 2014 Plan and the 2001 Plan as of and for the year ended December 31, 2016: Options Weighted- Weighted- (in years) Aggregate Options outstanding at December 31, 2015 257,334 $ 102.96 Granted 107,000 140.41 Exercised (63,084 ) 71.18 Forfeited (7,000 ) 127.56 Options outstanding at December 31, 2016 294,250 $ 122.80 3.56 $ 7,451 Options exercisable at December 31, 2016 24,419 $ 109.81 2.92 $ 935
Summary of Non-Vested Restricted Stock Activity	The following is a summary of non-vested Shares Weighted- Non-vested 2,819,196 $ 49.99 Granted 183,144 130.01 Vested (77,450 ) 63.26 Forfeited (26,000 ) 112.79 Non-vested 2,898,890 $ 54.13
Valuation Assumptions Used for Stock Option Awards	The following table presents the weighted-average assumptions used for stock options granted: Years Ended December 31, 2016 2015 2014 Expected term in years 4.25 4.25 4.25 Risk-free interest rate 1.24 % 1.25 % 1.35 % Expected volatility 18.65 % 20.96 % 22.07 % Expected dividend yield 2.54 % 2.29 % 1.69 % Grant date fair value $ 16.37 $ 17.17 $ 15.75
Share-Based Compensation Expense	The following table provides information on share-based compensation expense: Years Ended December 31, 2016 2015 2014 Stock options $ 1,149 $ 952 $ 801 Non-vested 11,170 11,644 10,672 Share-based compensation expense $ 12,319 $ 12,596 $ 11,473

GOODWILL AND OTHER INTANGIBLE36

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2016
Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill are as follows: Balance at December 31, 2014 $ 387,311 Foreign currency translation adjustment (9,001 ) Balance at December 31, 2015 378,310 Foreign currency translation adjustment 1,427 Balance at December 31, 2016 $ 379,737
Finite lived intangible assets	Other intangible assets are comprised of the following: December 31, Estimated Useful Lives 2016 2015 Indefinite lived intangible assets - Trade names, trademarks and distribution rights $ 120,288 $ 118,205 Finite lived intangible assets: Customer relationships 10-15 years 70,194 68,981 Trade name 10 years 1,150 1,150 Non-compete 7 years 369 369 Accumulated amortization (33,437 ) (28,224 ) Finite lived intangible assets, net 38,276 42,276 $ 158,564 $ 160,481
Indefinite Lived Intangible Assets	Other intangible assets are comprised of the following: December 31, Estimated Useful Lives 2016 2015 Indefinite lived intangible assets - Trade names, trademarks and distribution rights $ 120,288 $ 118,205 Finite lived intangible assets: Customer relationships 10-15 years 70,194 68,981 Trade name 10 years 1,150 1,150 Non-compete 7 years 369 369 Accumulated amortization (33,437 ) (28,224 ) Finite lived intangible assets, net 38,276 42,276 $ 158,564 $ 160,481

DERIVATIVES (Tables)

DERIVATIVES (Tables)	12 Months Ended
	Dec. 31, 2016
Impact from Foreign Exchange Derivative Instruments Designated as Cash Flow Hedges	The impact from foreign exchange derivative instruments designated as cash flow hedges were as follows: Years Ended December 31, 2016 2015 (Loss) gain recorded in accumulated other comprehensive loss $ (1,321 ) $ 3,716 Loss (gain) reclassified from accumulated other comprehensive loss into earnings $ 442 $ (2,730 )
Fair Value of Derivative Instruments and Location in the Balance Sheets	The following table summarizes the fair value of derivative instruments, which consist solely of foreign currency forward contracts, included in other current assets and accrued expenses and other current liabilities in our consolidated balance sheets. See Note 14. Asset Derivatives Liability Derivatives December 31, 2016 2015 2016 2015 Derivatives designated as hedging instruments $ 227 $ 923 $ 35 $ 3 Derivatives not designated as hedging instruments 14 326 4 4 Total derivative instruments $ 241 $ 1,249 $ 39 $ 7

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables present our assets and liabilities carried at fair value that are measured on a recurring basis: Total Fair Value Measurements Balance Sheet Location Level 1 Level 2 Level 3 Assets: Available-for-sale Other assets $ 281 $ 281 — — Derivative financial instruments Other current assets $ 241 — $ 241 — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 39 — $ 39 — Total Fair Value Measurements Balance Sheet Location Level 1 Level 2 Level 3 Assets: Available-for-sale Other assets $ 254 $ 254 — — Derivative financial instruments Other current assets $ 1,249 — $ 1,249 — Liabilities: Derivative financial instruments Accrued expenses and other current liabilities $ 7 — $ 7 —

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2016
Future Minimum Lease Payments under Non-Cancelable Operating Leases	At December 31, 2016, future minimum payments under non-cancelable 2017 $ 56,639 2018 48,420 2019 35,926 2020 21,650 2021 13,184 Thereafter 13,362 Total minimum payments $ 189,181

INFORMATION ABOUT GEOGRAPHIC 40

INFORMATION ABOUT GEOGRAPHIC AREAS (Tables)	12 Months Ended
	Dec. 31, 2016
Revenues and Long-Lived Assets by Geographical Area	Our operations are primarily within the United States, including Puerto Rico, Canada and Mexico. Products are also sold from the United States on an export-only basis to portions of Latin America and the Caribbean Basin. The following tables set forth revenues and long-lived assets by geographical area: Years Ended December 31, 2016 2015 2014 Revenues: United States $ 3,813,204 $ 3,710,977 $ 3,525,176 Canada 267,220 263,908 300,289 Mexico 140,278 138,354 119,075 Total revenues $ 4,220,702 $ 4,113,239 $ 3,944,540 December 31, 2016 2015 Long-Lived Assets: United States $ 467,728 $ 441,656 Canada 155,758 154,437 Mexico 5,317 5,413 Total long-lived assets $ 628,803 $ 601,506

SUPPLEMENTAL CASH FLOW INFORM41

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2016
Supplemental Cash Flow Information	Supplemental cash flow information was as follows: Years Ended December 31, 2016 2015 2014 Interest paid $ 3,362 $ 4,993 $ 4,393 Income taxes net of refunds $ 99,006 $ 103,261 $ 82,850

SELECTED QUARTERLY FINANCIAL 42

SELECTED QUARTERLY FINANCIAL DATA (Tables)	12 Months Ended
	Dec. 31, 2016
Selected Quarterly Financial Data	WATSCO, INC. AND SUBSIDIARIES SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (In thousands, except per share data) 1st 2nd 3rd 4th Total Year Ended December 31, 2016 Revenues (1) $ 851,424 $ 1,214,435 $ 1,241,232 $ 913,611 $ 4,220,702 Gross profit $ 212,447 $ 291,861 $ 302,204 $ 228,072 $ 1,034,584 Net income attributable to Watsco, Inc. $ 25,537 $ 64,621 $ 63,099 $ 29,553 $ 182,810 Earnings per share for Common and Class B common stock (2): Basic $ 0.71 $ 1.82 $ 1.78 $ 0.81 $ 5.16 Diluted $ 0.71 $ 1.82 $ 1.78 $ 0.81 $ 5.15 Year Ended December 31, 2015 Revenues (1) $ 808,972 $ 1,223,439 $ 1,177,012 $ 903,816 $ 4,113,239 Gross profit $ 204,225 $ 295,245 $ 285,846 $ 222,041 $ 1,007,357 Net income attributable to Watsco, Inc. $ 23,048 $ 65,423 $ 57,968 $ 26,490 $ 172,929 Earnings per share for Common and Class B common stock (2): Basic $ 0.65 $ 1.86 $ 1.64 $ 0.75 $ 4.91 Diluted $ 0.65 $ 1.85 $ 1.64 $ 0.75 $ 4.90 (1) Sales of residential central air conditioners, heating equipment and parts and supplies are seasonal. Demand related to the residential central air conditioning replacement market is typically highest in the second and third quarters, and demand for heating equipment is usually highest in the fourth quarter. Demand related to the new construction sectors throughout most of the markets is fairly even during the year except for dependence on housing completions and related weather and economic conditions. (2) Quarterly and year-to-date earnings per share are calculated on an individual basis; therefore, the sum of earnings per share amounts for the quarters may not equal earnings per share amounts for the year.

Summary of Significant Accoun43

Summary of Significant Accounting Policies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2016USD ($)EntityStateStore	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Significant Accounting Policies [Line Items]
Number of joint ventures | Entity	3
Allowance for doubtful accounts	$ 6,169,000	$ 5,305,000
Capitalized vendor rebates	9,926,000	8,086,000
Goodwill and other intangible assets impairment	0	0	$ 0
Advertising expense	22,242,000	21,150,000	19,754,000
Shipping and handling costs	42,809,000	41,345,000	43,324,000
Provision (benefit) for income taxes	105,936,000	$ 104,677,000	$ 91,839,000
Adjustments for New Accounting Pronouncement
Significant Accounting Policies [Line Items]
Provision (benefit) for income taxes	$ (2,898,000)
Minimum | Buildings and Improvements
Significant Accounting Policies [Line Items]
Estimated useful lives in years	3 years
Minimum | Other Depreciable Assets
Significant Accounting Policies [Line Items]
Estimated useful lives in years	3 years
Minimum | Furniture and fixtures
Significant Accounting Policies [Line Items]
Estimated useful lives in years	5 years
Maximum | Buildings and Improvements
Significant Accounting Policies [Line Items]
Estimated useful lives in years	40 years
Maximum | Other Depreciable Assets
Significant Accounting Policies [Line Items]
Estimated useful lives in years	10 years
Maximum | Furniture and fixtures
Significant Accounting Policies [Line Items]
Estimated useful lives in years	7 years
Watsco, Inc.
Significant Accounting Policies [Line Items]
Number of locations from which entity operates | Store	565
Number of states in which entity operates | State	37

Adoption of Amended Guidance Im

Adoption of Amended Guidance Impact on Previously Reported Quarterly Results (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended																12 Months Ended
	Dec. 31, 2016		Sep. 30, 2016		Jun. 30, 2016		Mar. 31, 2016		Dec. 31, 2015		Sep. 30, 2015		Jun. 30, 2015		Mar. 31, 2015		Dec. 31, 2016		Dec. 31, 2015		Dec. 31, 2014
Income Statement:
Income taxes																	$ 105,936		$ 104,677		$ 91,839
Net income	$ 29,553		$ 63,099		$ 64,621		$ 25,537		$ 26,490		$ 57,968		$ 65,423		$ 23,048		$ 182,810		$ 172,929		$ 151,387
Diluted earnings per share	$ 0.81	[1]	$ 1.78	[1]	$ 1.82	[1]	$ 0.71	[1]	$ 0.75	[1]	$ 1.64	[1]	$ 1.85	[1]	$ 0.65	[1]	$ 5.15	[1]	$ 4.90	[1]	$ 4.32
Diluted weighted-average common shares outstanding																	32,616,504		32,480,356		32,358,854
Balance Sheet:
Paid-in capital	$ 592,350								$ 602,522								$ 592,350		$ 602,522
Cash Flow Statement:
Net cash provided by operating activities																	277,756		221,383		$ 144,980
Net cash used in financing activities																	$ (213,916)		$ (186,320)		$ (120,207)
As Reported
Income Statement:
Income taxes							$ 15,508
Net income							$ 34,174
Diluted earnings per share							$ 0.71
Diluted weighted-average common shares outstanding							32,537,225
Balance Sheet:
Paid-in capital							$ 610,285
Cash Flow Statement:
Net cash provided by operating activities							41,852
Net cash used in financing activities							(41,638)
As Adjusted
Income Statement:
Income taxes							14,654
Net income							$ 35,028
Diluted earnings per share							$ 0.74
Diluted weighted-average common shares outstanding							32,546,314
Balance Sheet:
Paid-in capital							$ 609,431
Cash Flow Statement:
Net cash provided by operating activities							42,706
Net cash used in financing activities							$ (42,492)
[1]	Quarterly and year-to-date earnings per share are calculated on an individual basis; therefore, the sum of earnings per share amounts for the quarters may not equal earnings per share amounts for the year.

Schedule of Basic and Diluted E

Schedule of Basic and Diluted Earnings per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended																12 Months Ended
	Dec. 31, 2016		Sep. 30, 2016		Jun. 30, 2016		Mar. 31, 2016		Dec. 31, 2015		Sep. 30, 2015		Jun. 30, 2015		Mar. 31, 2015		Dec. 31, 2016		Dec. 31, 2015		Dec. 31, 2014
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income attributable to Watsco, Inc. shareholders	$ 29,553		$ 63,099		$ 64,621		$ 25,537		$ 26,490		$ 57,968		$ 65,423		$ 23,048		$ 182,810		$ 172,929		$ 151,387
Less: distributed and undistributed earnings allocated to non-vested restricted common stock																	14,806		13,634		11,444
Earnings allocated to Watsco, Inc. shareholders - Basic																	$ 168,004		$ 159,295		$ 139,943
Weighted-average common shares outstanding - Basic																	32,582,385		32,435,961		32,308,073
Basic earnings per share for Common and Class B common stock	$ 0.81	[1]	$ 1.78	[1]	$ 1.82	[1]	$ 0.71	[1]	$ 0.75	[1]	$ 1.64	[1]	$ 1.86	[1]	$ 0.65	[1]	$ 5.16	[1]	$ 4.91	[1]	$ 4.33
Net income attributable to Watsco, Inc. shareholders	$ 29,553		$ 63,099		$ 64,621		$ 25,537		$ 26,490		$ 57,968		$ 65,423		$ 23,048		$ 182,810		$ 172,929		$ 151,387
Less: distributed and undistributed earnings allocated to non-vested restricted common stock																	14,801		13,626		11,435
Earnings allocated to Watsco, Inc. shareholders - Diluted																	$ 168,009		$ 159,303		$ 139,952
Weighted-average common shares outstanding - Basic																	32,582,385		32,435,961		32,308,073
Effect of dilutive stock options																	34,119		44,395		50,781
Weighted-average common shares outstanding - Diluted																	32,616,504		32,480,356		32,358,854
Diluted earnings per share for Common and Class B common stock	$ 0.81	[1]	$ 1.78	[1]	$ 1.82	[1]	$ 0.71	[1]	$ 0.75	[1]	$ 1.64	[1]	$ 1.85	[1]	$ 0.65	[1]	$ 5.15	[1]	$ 4.90	[1]	$ 4.32
Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders - Basic																	$ 154,021		$ 146,037		$ 128,214
Class B Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Earnings allocated to Watsco, Inc. shareholders - Basic																	$ 13,983		$ 13,258		$ 11,729
[1]	Quarterly and year-to-date earnings per share are calculated on an individual basis; therefore, the sum of earnings per share amounts for the quarters may not equal earnings per share amounts for the year.

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share [Line Items]
Convertible Class B common stock outstanding	2,711,811	2,699,710	2,707,725
Anti-dilutive stock options excluded from earnings per share	31,839	67,014	9,984

Schedule of Tax Effects Allocat

Schedule of Tax Effects Allocated to Each Component of Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Components Of Other Comprehensive Income Loss [Line Items]
Foreign currency translation adjustment	$ 6,211	$ (39,378)	$ (21,117)
Unrealized (loss) gain on cash flow hedging instruments	(1,321)	3,716	384
Income tax benefit (expense)	356	(1,003)	(104)
Unrealized (loss) gain on cash flow hedging instruments, net of tax	(965)	2,713	280
Reclassification of loss (gain) on cash flow hedging instruments into earnings	442	(2,730)
Income tax (benefit) expense	(119)	737
Reclassification of loss (gain) on cash flow hedging instruments into earnings, net of tax	323	(1,993)
Unrealized gain (loss) on available-for-sale securities	27	(12)	1
Income tax (expense) benefit	(13)	4
Unrealized gain (loss) on available-for-sale securities, net of tax	14	(8)	1
Other comprehensive gain (loss)	$ 5,583	$ (38,666)	$ (20,836)

Schedule of Accumulated Other C

Schedule of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (46,904)	$ (23,747)
Ending balance	(43,530)	(46,904)	$ (23,747)
Foreign currency translation adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(47,204)	(23,623)	(11,181)
Current period other comprehensive income (loss)	3,745	(23,581)	(12,442)
Ending balance	(43,459)	(47,204)	(23,623)
Cash flow hedging instruments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	600	168
Current period other comprehensive income (loss)	(579)	1,628	168
Less reclassification adjustment	194	(1,196)
Ending balance	215	600	168
Available-for-sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(300)	(292)	(293)
Current period other comprehensive income (loss)	14	(8)	1
Ending balance	$ (286)	$ (300)	$ (292)

Supplier Concentration - Additi

Supplier Concentration - Additional Information (Detail) - Supplier Concentration Risk - Vendor	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Concentration Risk [Line Items]
Number of key suppliers	10
Cost of Goods, Total
Concentration Risk [Line Items]
Percentage of purchases from key suppliers	85.00%	84.00%	82.00%
Carrier and Its Affiliates | Cost of Goods, Total
Concentration Risk [Line Items]
Percentage of purchases from key suppliers	62.00%	62.00%	61.00%

Property and Equipment, Net (De

Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 204,147	$ 166,832
Accumulated depreciation and amortization	(113,645)	(104,117)
Property and equipment, net	90,502	62,715
Land
Property, Plant and Equipment [Line Items]
Property and equipment, gross	820	820
Buildings and Improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	71,082	69,675
Machinery, vehicles and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	74,640	43,150
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	15,090	14,311
Computer Hardware and Software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 42,515	$ 38,876

Property and Equipment - Additi

Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Depreciation and amortization expense	$ 14,853	$ 13,802	$ 12,158

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 24, 2017	Dec. 31, 2015
Debt Instrument [Line Items]
Revolving credit agreement maximum borrowing capacity	$ 600,000
Revolving credit agreement maturity date	Jul. 1, 2019
Commitment fee percentage on unused portion of the commitment	0.15%
Borrowings under revolving credit agreement	$ 235,294		$ 245,300
Swingline Subfacility
Debt Instrument [Line Items]
Revolving credit agreement maximum borrowing capacity	90,000
Letter of Credit
Debt Instrument [Line Items]
Revolving credit agreement maximum borrowing capacity	50,000
Letter of Credit | Subsequent Event
Debt Instrument [Line Items]
Revolving credit agreement maximum borrowing capacity		$ 10,000
Multicurrency borrowing sublimit
Debt Instrument [Line Items]
Revolving credit agreement maximum borrowing capacity	$ 75,000
Minimum
Debt Instrument [Line Items]
Commitment fee percentage on unused portion of the commitment	0.125%
Maximum
Debt Instrument [Line Items]
Commitment fee percentage on unused portion of the commitment	0.35%
London Interbank Offer Rate
Debt Instrument [Line Items]
Basis spread	1.00%
London Interbank Offer Rate | Minimum
Debt Instrument [Line Items]
Basis spread	0.875%
London Interbank Offer Rate | Maximum
Debt Instrument [Line Items]
Basis spread	2.50%
Prime Rate
Debt Instrument [Line Items]
Basis spread	0.00%
Prime Rate | Minimum
Debt Instrument [Line Items]
Basis spread	0.00%
Prime Rate | Maximum
Debt Instrument [Line Items]
Basis spread	1.50%

Components of Income Tax Expens

Components of Income Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Components Of Income Tax Expense Benefit [Line Items]
U.S. Federal	$ 86,719	$ 85,585	$ 74,561
State	9,801	9,431	10,325
Foreign	9,416	9,661	6,953
Income tax expense	105,936	104,677	91,839
Current	103,216	99,990	91,550
Deferred	2,720	4,687	289
Income tax expense	$ 105,936	$ 104,677	$ 91,839

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Taxes [Line Items]
Percentage of income attributable to wholly-owned operations and investments for which income tax expense and effective tax rate calculated	100.00%
Undistributed earnings of foreign subsidiaries	$ 130,000
Valuation allowance	0	$ 0
Gross unrecognized tax benefits	3,695	3,513	$ 3,719	$ 3,135
Unrecognized tax benefits that, if recognized, would affect the effective tax rate	2,573	2,416
Estimated accrued interest and penalties resulting from unrecognized tax benefits	$ 414	$ 384
Minimum
Income Taxes [Line Items]
State and other net operating loss carry forwards expiration date	2,017
Maximum
Income Taxes [Line Items]
State and other net operating loss carry forwards expiration date	2,036
State and other
Income Taxes [Line Items]
Net operating loss carry forwards	$ 6,872
Federal
Income Taxes [Line Items]
Net operating loss carry forwards	$ 0

Reconciliation of Effective Inc

Reconciliation of Effective Income Tax Rate (Detail)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of Effective Income Tax Rate [Line Items]
U.S. federal statutory rate	35.00%	35.00%	35.00%
State income taxes, net of federal benefit and other	2.10%	2.30%	3.00%
Excess tax benefits from share-based compensation	(1.00%)
Tax effects on foreign income	(0.10%)	(0.30%)	(1.00%)
Effective income tax rate attributable to Watsco, Inc.	36.00%	37.00%	37.00%
Taxes attributable to non-controlling interest	(5.00%)	(5.40%)	(6.40%)
Effective income tax rate	31.00%	31.60%	30.60%

Significant Components of Curre

Significant Components of Current and Long-Term Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands		Dec. 31, 2016	Dec. 31, 2015
Components Of Deferred Income Tax Assets And Liabilities [Line Items]
Capitalized inventory costs and inventory reserves		$ 2,301	$ 1,794
Allowance for doubtful accounts		1,379	1,053
Self-insurance reserves		500	519
Other current deferred tax assets		1,778	1,921
Total current deferred tax assets	[1]	5,958	5,287
Share-based compensation		26,239	23,603
Other long-term deferred tax assets		449	352
Net operating loss carryforwards		209	207
Total long-term deferred tax assets		26,897	24,162
Valuation allowance		0	0
Total long-term deferred tax assets	[2]	26,897	24,162
Other current deferred tax liabilities		(473)	(686)
Total current deferred tax liabilities	[1]	(473)	(686)
Deductible goodwill		(88,581)	(83,868)
Depreciation		(5,883)	(3,774)
Other long-term deferred tax liabilities		(1,160)	(1,533)
Total long-term deferred tax liabilities	[2]	(95,624)	(89,175)
Net deferred tax liabilities		$ (63,242)	$ (60,412)
[1]	Current deferred tax assets and liabilities have been included in the consolidated balance sheets in other current assets.
[2]	Long-term deferred tax assets and liabilities have been included in the consolidated balance sheets in deferred income taxes and other liabilities.

Changes in Gross Unrecognized T

Changes in Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Contingency [Line Items]
Beginning balance	$ 3,513	$ 3,719	$ 3,135
Additions based on tax positions related to the current year	547	871	751
Reductions due to lapse of applicable statute of limitations	(365)	(1,077)	(167)
Ending balance	$ 3,695	$ 3,513	$ 3,719

Share-Based Compensation and 58

Share-Based Compensation and Benefit Plans - Additional Information (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)Age$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options of common stock outstanding	294,250	257,334
Total intrinsic value of stock options exercised | $	$ 4,490	$ 7,525	$ 3,746
Cash received from Common stock issued | $	4,447	4,850	3,324
Common stock contribution to 401(k) plan | $	$ 2,348	$ 1,963	$ 1,759
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate shares of common stock that may be granted	1,500,000
Shares reserved for future grant	496,160
Number of days under which shares to be purchased by employee on such available	90 days
Discount allowed to employees to purchase share	5.00%
Shares purchased under ESPP	5,956	6,463	6,995
Average price of the shares purchased by employees | $ / shares	$ 125.84	$ 112.53	$ 90.89
Additional shares issued resulting from cash dividends reinvested in common stock	3,442	3,183	2,953
Net proceeds from shares purchased under ESPP | $	$ 1,206	$ 1,107	$ 921
2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of market price that share-based compensation awards are granted at	100.00%
Aggregate shares of common stock that may be granted	2,000,000
Shares reserved for future grant	1,424,848
Contractual term of stock option awards	5 years
2014 Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest	2 years
2014 Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest	4 years
2014 Plan | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares awarded under plan	293,950
2014 Plan | Common and Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for future grant	45,421
2014 Plan | Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares awarded under plan	326,623
401(k) Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock contribution to 401(k) Plan, shares	20,045	18,343	18,309
Common stock contribution to 401(k) plan | $	$ 2,348	$ 1,963	$ 1,759
2001 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate shares of common stock that may be granted	0
Contractual term of stock option awards	5 years
Options of common stock outstanding	37,750
2001 Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest	2 years
2001 Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Years in which options plan vest	4 years
Non-Vested Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value of non-vested (restricted) stock | $ / shares	$ 130.01	$ 114.55	$ 96.84
Fair value of non-vested stock that vested | $	$ 10,096	$ 2,468	$ 5,789
Shares withheld as payment for tax withholdings related to share based compensation, shares		7,206	21,028
Shares withheld as payment for tax withholdings related to share based compensation, market value | $		$ 889	$ 2,125
Unrecognized share-based compensation expense | $	$ 100,397
Weighted-average period for recognition of share-based compensation expense, in years	11 years
Non-Vested Restricted Stock | Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense | $	$ 59,000
Weighted-average period for recognition of share-based compensation expense, in years	10 years
Shares of non-vested (restricted) stock obligated to issue in connection with incentive compensation agreements	67,853
Non-Vested Restricted Stock | Chief Executive Officer | Share-based Compensation Award, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense | $	$ 13,000
Weighted-average period for recognition of share-based compensation expense, in years	6 years
Age of Chief Executive Officer when non-vested (restricted) stock vests | Age	82
Non-Vested Restricted Stock | Chief Executive Officer | Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense | $	$ 46,000
Weighted-average period for recognition of share-based compensation expense, in years	10 years
Age of Chief Executive Officer when non-vested (restricted) stock vests | Age	86
Non-Vested Restricted Stock | Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Age of employee when non-vested (restricted) stock vests | Age	62
Non-Vested Restricted Stock | President [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average period for recognition of share-based compensation expense, in years	27 years
Shares of non-vested (restricted) stock obligated to issue in connection with incentive compensation agreements	25,774
Non-Vested Restricted Stock | Common and Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares	30,413
Shares withheld as payment for tax withholdings related to share based compensation, market value | $	$ 3,967
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense | $	$ 2,096
Weighted-average period for recognition of share-based compensation expense, in years	1 year 9 months 18 days
Fair value of stock options vested | $	$ 736	$ 856	$ 1,145
Stock Options | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld as payment for tax withholdings related to share based compensation, shares	348	26,006	5,454
Shares withheld as payment for tax withholdings related to share based compensation, market value | $	$ 51	$ 3,251	$ 490

Summary of Stock Option Activit

Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, Outstanding beginning balance | shares	257,334
Options, Granted | shares	107,000
Options, Exercised | shares	(63,084)
Options, Forfeited | shares	(7,000)
Options, Outstanding ending balance | shares	294,250
Options, Exercisable | shares	24,419
Weighted-Average Exercise Price, Outstanding beginning balance | $ / shares	$ 102.96
Weighted-Average Exercise Price, Granted | $ / shares	140.41
Weighted-Average Exercise Price, Exercised | $ / shares	71.18
Weighted-Average Exercise Price, Forfeited | $ / shares	127.56
Weighted-Average Exercise Price, Outstanding ending balance | $ / shares	122.80
Weighted-Average Exercise Price, Exercisable | $ / shares	$ 109.81
Weighted-Average Remaining Contractual Term (in years), Outstanding	3 years 6 months 22 days
Weighted-Average Remaining Contractual Term (in years), Exercisable	2 years 11 months 1 day
Aggregate Intrinsic Value, Outstanding | $	$ 7,451
Aggregate Intrinsic Value, Exercisable | $	$ 935

Summary of Non-Vested Restricte

Summary of Non-Vested Restricted Stock Activity (Detail) - Non-Vested Restricted Stock - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Non-vested beginning balance	2,819,196
Shares, Granted	183,144
Shares, Vested	(77,450)
Shares, Forfeited	(26,000)
Shares, Non-vested ending balance	2,898,890	2,819,196
Weighted-Average Grant Date Fair Value, Non-vested beginning balance	$ 49.99
Weighted-Average Grant Date Fair Value, Granted	130.01	$ 114.55	$ 96.84
Weighted-Average Grant Date Fair Value, Vested	63.26
Weighted-Average Grant Date Fair Value, Forfeited	112.79
Weighted-Average Grant Date Fair Value, Non-vested ending balance	$ 54.13	$ 49.99

Weighted-Average Assumptions Us

Weighted-Average Assumptions Used for Stock Options Granted (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term in years	4 years 3 months	4 years 3 months	4 years 3 months
Risk-free interest rate	1.24%	1.25%	1.35%
Expected volatility	18.65%	20.96%	22.07%
Expected dividend yield	2.54%	2.29%	1.69%
Grant date fair value	$ 16.37	$ 17.17	$ 15.75

Share-Based Compensation Expens

Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 12,319	$ 12,596	$ 11,473
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	1,149	952	801
Non-Vested Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 11,170	$ 11,644	$ 10,672

Purchase of Additional Owners63

Purchase of Additional Ownership Interest in Joint Ventures - Additional Information (Detail) - USD ($) $ in Thousands	Feb. 13, 2017	Nov. 29, 2016	Jul. 01, 2014
Carrier Enterprise II
Business Acquisition [Line Items]
Additional ownership interest acquired		10.00%
Cash consideration		$ 42,909
Carrier Enterprise II | Subsequent Event
Business Acquisition [Line Items]
Additional ownership interest acquired	10.00%
Cash consideration	$ 42,688
Controlling interest, ownership percentage	80.00%
Carrier Enterprise I
Business Acquisition [Line Items]
Additional ownership interest acquired			10.00%
Cash consideration			$ 87,735
Controlling interest, ownership percentage			80.00%

Changes in Carrying Amount of G

Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 378,310	$ 387,311
Foreign currency translation adjustment	1,427	(9,001)
Goodwill, Ending Balance	$ 379,737	$ 378,310

Other Intangible Assets (Detail

Other Intangible Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Intangible Assets [Line Items]
Indefinite lived intangible assets - Trade names, trademarks and distribution rights	$ 120,288	$ 118,205
Finite lived intangible assets:
Accumulated amortization	(33,437)	(28,224)
Finite lived intangible assets, net	38,276	42,276
Intangible assets, net	158,564	160,481
Customer Relationships
Finite lived intangible assets:
Finite lived intangible assets	$ 70,194	68,981
Customer Relationships | Minimum
Intangible Assets [Line Items]
Finite lived intangible assets, Estimated Useful lives, years	10 years
Customer Relationships | Maximum
Intangible Assets [Line Items]
Finite lived intangible assets, Estimated Useful lives, years	15 years
Trade Name
Intangible Assets [Line Items]
Finite lived intangible assets, Estimated Useful lives, years	10 years
Finite lived intangible assets:
Finite lived intangible assets	$ 1,150	1,150
Noncompete Agreements
Intangible Assets [Line Items]
Finite lived intangible assets, Estimated Useful lives, years	7 years
Finite lived intangible assets:
Finite lived intangible assets	$ 369	$ 369

Goodwill and Other Intangible66

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Goodwill And Intangible Assets [Line Items]
Amortization expense related to finite lived intangible assets	$ 5,213	$ 5,315	$ 5,769
Amortization of finite lived intangible assets for 2017	5,200
Amortization of finite lived intangible assets for 2018	5,200
Amortization of finite lived intangible assets for 2019	5,200
Amortization of finite lived intangible assets for 2020	5,200
Amortization of finite lived intangible assets for 2021	$ 4,300

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 1999
Stockholders Equity Note [Line Items]
Preferred stock outstanding	0	0
Number of shares authorized to be repurchased				7,500,000
Treasury stock, shares repurchased	0	0	0
Cost of repurchased shares	$ 114,425	$ 114,425
Remaining number of shares authorized to be repurchased	1,129,087
Common Stock
Stockholders Equity Note [Line Items]
Amount of votes common stock is entitled	One
Percentage of Board entitled to elect	25.00%
Treasury stock, shares	6,322,650	6,322,650
Class B Common Stock
Stockholders Equity Note [Line Items]
Amount of votes common stock is entitled	Ten
Treasury stock, shares	48,263	48,263

Financial Instruments - Additio

Financial Instruments - Additional Information (Detail) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Financial Instrument [Line Items]
Estimated fair value of contingent liability	$ 0
Standby Letters of Credit
Financial Instrument [Line Items]
Fair value of contingent liability	2,430,000	$ 2,690,000
Performance Bonds
Financial Instrument [Line Items]
Fair value of contingent liability	$ 8,000,000	$ 4,000,000

Derivatives - Additional Inform

Derivatives - Additional Information (Detail) - Foreign Currency Forward Contracts - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Derivatives not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value of derivatives	$ 4,650
Contract expiring terms	2017-03
(Losses) gains from foreign currency forward contracts not designated as hedging instruments	$ (306)	$ 2,552	$ 142
Cash Flow Hedge
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value of derivatives	$ 33,200
Contract maturity period	One year or less
Contract expiring terms	2017-09
Pre-tax gain to be reclassified into earnings within the next 12 months	$ 490

Impact from Foreign Exchange De

Impact from Foreign Exchange Derivative Instruments Designated as Cash Flow Hedges (Detail) - Cash Flow Hedge - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) gain recorded in accumulated other comprehensive loss	$ (1,321)	$ 3,716
Loss (gain) reclassified from accumulated other comprehensive loss into earnings	$ 442	$ (2,730)

Fair Value of Derivative Instru

Fair Value of Derivative Instruments and Location in the Balance Sheets (Detail) - Foreign Currency Forward Contracts - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	$ 241	$ 1,249
Derivative instruments, liabilities derivatives	39	7
Derivatives Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	227	923
Derivative instruments, liabilities derivatives	35	3
Derivatives not Designated as Hedging Instruments
Derivatives, Fair Value [Line Items]
Derivative instruments, assets derivatives	14	326
Derivative instruments, liabilities derivatives	$ 4	$ 4

Assets and Liabilities Carried

Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Other assets
Assets:
Available-for-sale securities	$ 281	$ 254
Other Current Assets
Assets:
Derivative financial instruments	241	1,249
Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments	39	7
Fair Value Measurements, Level 1 | Other assets
Assets:
Available-for-sale securities	281	254
Fair Value Measurements, Level 2 | Other Current Assets
Assets:
Derivative financial instruments	241	1,249
Fair Value Measurements, Level 2 | Accrued expenses and other current liabilities
Liabilities:
Derivative financial instruments	$ 39	$ 7

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Line Items]
Self-insurance reserves	$ 2,951	$ 3,214
Maximum exposure to loss related to involvement with variable interest entity	$ 4,300
Operating leases maximum maturity date	2,025
Rental expense	$ 83,260	$ 82,581	$ 81,155
Carrier and Its Affiliates
Commitments and Contingencies Disclosure [Line Items]
Non-cancelable purchase obligations for goods	29,000
Key Suppliers
Commitments and Contingencies Disclosure [Line Items]
Non-cancelable purchase obligations for goods	$ 17,000

Future Minimum Leases Payments

Future Minimum Leases Payments under Non-Cancelable Operating Leases (Detail) $ in Thousands	Dec. 31, 2016USD ($)
Operating Leases Future Minimum Payments Due [Line Items]
2,017	$ 56,639
2,018	48,420
2,019	35,926
2,020	21,650
2,021	13,184
Thereafter	13,362
Total minimum payments	$ 189,181

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Supplier Concentration Risk | Cost of Goods, Total
Related Party Transaction [Line Items]
Percentage of purchases from key suppliers	85.00%	84.00%	82.00%
Carrier and Its Affiliates | Supplier Concentration Risk
Related Party Transaction [Line Items]
Amount payable to Carrier and its affiliates, net of receivables	$ 63,000	$ 85,000
Revenues from sales to Carrier and its affiliates	$ 56,000	$ 62,000	$ 38,000
Carrier and Its Affiliates | Supplier Concentration Risk | Cost of Goods, Total
Related Party Transaction [Line Items]
Percentage of purchases from key suppliers	62.00%	62.00%	61.00%
Moss & Associates LLC | Customary Payments for Remodeling of Corporate Headquarters
Related Party Transaction [Line Items]
Payment for related party transaction	$ 291
Payable for related party transaction	$ 109

Revenues and Long-Lived Assets

Revenues and Long-Lived Assets by Geographical Area (Detail) - USD ($) $ in Thousands	3 Months Ended																12 Months Ended
	Dec. 31, 2016		Sep. 30, 2016	[1]	Jun. 30, 2016	[1]	Mar. 31, 2016	[1]	Dec. 31, 2015		Sep. 30, 2015	[1]	Jun. 30, 2015	[1]	Mar. 31, 2015	[1]	Dec. 31, 2016		Dec. 31, 2015		Dec. 31, 2014
Geographic Area Information [Line Items]
Revenues	$ 913,611	[1]	$ 1,241,232		$ 1,214,435		$ 851,424		$ 903,816	[1]	$ 1,177,012		$ 1,223,439		$ 808,972		$ 4,220,702	[1]	$ 4,113,239	[1]	$ 3,944,540
Long-Lived Assets	628,803								601,506								628,803		601,506
UNITED STATES
Geographic Area Information [Line Items]
Revenues																	3,813,204		3,710,977		3,525,176
Long-Lived Assets	467,728								441,656								467,728		441,656
CANADA
Geographic Area Information [Line Items]
Revenues																	267,220		263,908		300,289
Long-Lived Assets	155,758								154,437								155,758		154,437
MEXICO
Geographic Area Information [Line Items]
Revenues																	140,278		138,354		$ 119,075
Long-Lived Assets	$ 5,317								$ 5,413								$ 5,317		$ 5,413
[1]	Sales of residential central air conditioners, heating equipment and parts and supplies are seasonal. Demand related to the residential central air conditioning replacement market is typically highest in the second and third quarters, and demand for heating equipment is usually highest in the fourth quarter. Demand related to the new construction sectors throughout most of the markets is fairly even during the year except for dependence on housing completions and related weather and economic conditions.

Supplemental Cash Flow Inform77

Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash Flow Supplemental Disclosures [Line Items]
Interest paid	$ 3,362	$ 4,993	$ 4,393
Income taxes net of refunds	$ 99,006	$ 103,261	$ 82,850

Subsequent Events - Additional

Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	Feb. 13, 2017	Jan. 03, 2017	Nov. 29, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jan. 24, 2017
Subsequent Event [Line Items]
Cash dividend				$ 3.60	$ 2.80	$ 2
Revolving credit agreement maximum borrowing capacity				$ 600,000
Carrier Enterprise II
Subsequent Event [Line Items]
Additional ownership interest acquired			10.00%
Cash consideration			$ 42,909
Carrier Enterprise II | Subsequent Event
Subsequent Event [Line Items]
Additional ownership interest acquired	10.00%
Cash consideration	$ 42,688
Controlling interest, ownership percentage	80.00%
Letter of Credit
Subsequent Event [Line Items]
Revolving credit agreement maximum borrowing capacity				$ 50,000
Letter of Credit | Subsequent Event
Subsequent Event [Line Items]
Revolving credit agreement maximum borrowing capacity							$ 10,000
Common Stock | Subsequent Event
Subsequent Event [Line Items]
Cash dividend		$ 1.05
Dividends, date declared		Jan. 3, 2017
Dividends, payable date		Jan. 31, 2017
Dividends, date of record		Jan. 17, 2017
Class B Common Stock | Subsequent Event
Subsequent Event [Line Items]
Cash dividend		$ 1.05
Dividends, date declared		Jan. 3, 2017
Dividends, payable date		Jan. 31, 2017
Dividends, date of record		Jan. 17, 2017

Selected Quarterly Financial 79

Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended																12 Months Ended
	Dec. 31, 2016		Sep. 30, 2016		Jun. 30, 2016		Mar. 31, 2016		Dec. 31, 2015		Sep. 30, 2015		Jun. 30, 2015		Mar. 31, 2015		Dec. 31, 2016		Dec. 31, 2015		Dec. 31, 2014
Quarterly Financial Data [Line Items]
Revenues	$ 913,611	[1]	$ 1,241,232	[1]	$ 1,214,435	[1]	$ 851,424	[1]	$ 903,816	[1]	$ 1,177,012	[1]	$ 1,223,439	[1]	$ 808,972	[1]	$ 4,220,702	[1]	$ 4,113,239	[1]	$ 3,944,540
Gross profit	228,072		302,204		291,861		212,447		222,041		285,846		295,245		204,225		1,034,584		1,007,357		956,402
Net income attributable to Watsco, Inc.	$ 29,553		$ 63,099		$ 64,621		$ 25,537		$ 26,490		$ 57,968		$ 65,423		$ 23,048		$ 182,810		$ 172,929		$ 151,387
Earnings per share for Common and Class B common stock:
Basic	$ 0.81	[2]	$ 1.78	[2]	$ 1.82	[2]	$ 0.71	[2]	$ 0.75	[2]	$ 1.64	[2]	$ 1.86	[2]	$ 0.65	[2]	$ 5.16	[2]	$ 4.91	[2]	$ 4.33
Diluted	$ 0.81	[2]	$ 1.78	[2]	$ 1.82	[2]	$ 0.71	[2]	$ 0.75	[2]	$ 1.64	[2]	$ 1.85	[2]	$ 0.65	[2]	$ 5.15	[2]	$ 4.90	[2]	$ 4.32
[1]	Sales of residential central air conditioners, heating equipment and parts and supplies are seasonal. Demand related to the residential central air conditioning replacement market is typically highest in the second and third quarters, and demand for heating equipment is usually highest in the fourth quarter. Demand related to the new construction sectors throughout most of the markets is fairly even during the year except for dependence on housing completions and related weather and economic conditions.
[2]	Quarterly and year-to-date earnings per share are calculated on an individual basis; therefore, the sum of earnings per share amounts for the quarters may not equal earnings per share amounts for the year.